The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
India. Bihar goes dry, no booze at home too: Everything you need to know
The ban includes Indian-made foreign liquor (IMFL), left out of the partial prohibition clamped on April 1.
Other than Bihar, a total ban on sale of liquor is in force in the states of Gujarat, Nagaland and parts of Manipur; as well as in the Union territory of Lakshadweep. Kerala has been implementing prohibition in a phased manner since 2014.
Haryana, Andhra Pradesh, Mizoram and Tamil Nadu enforced prohibition but repealed it later.
Here is all you need to know about the total prohibition in Bihar:
Meaning of total prohibition:
1. You cannot drink liquor even at home
2. Keeping liquor at home is also an offence
3. If travelling to Bihar, you can’t bring liquor
4. Exemption only to defence canteens. Liquor to be supplied to army personnel in bottles with broken seal
5. Liquor ban to cover foreigners as well
6. 45 bar licences to hotels, restaurants, clubs in Patna cancelled
7. The state would lose Rs 4,000 crore revenue annually
8. For four- or five-star hotels, the ban means a revenue loss of up to Rs 2.5 cr each annually
9. Government to formulate a policy for disposal of 36,000 litres of IMFL available with Bihar State Beverage Corporation Limited
Penalties as per the Bihar Excise (Amendment) Bill, 2016
1. It may invite the gallows or life term and fine up to Rs 10 lakh to manufacturers or sellers if illicit liquor causes death of a consumer
2. If illicit liquor causes disability, manufacturers or sellers of illicit liquor can get 10 year or life term and fine up to Rs 10 lakh
3. 8-10 year imprisonment and Rs 1-10 lakh fine in case of damage to anyone by illicit liquor
4. Drinking at public place to invite 5-7 year imprisonment and Rs 1 lakh fine
5. Rs 4 lakh humanitarian aid to kin of hooch tragedy victims
1. The state would lose projected revenue of Rs 4000 crore
2. It had paid rich dividends as the state’s revenue figure rose from paltry Rs 319 crore in 2005-06 to Rs 3650 crore in 2014-15
Effect on manufacturers
1. Bihar has four major players in liquor trade, including McDowell’s, United Breweries Limited (now Diego), Carlsberg and Cobra beer promoted by global giant Molson Coors and Lord Karan Bilimoria.
2. The beer manufacturing unit of Molson-Billimoria at Bihta had tripled its packaging capacity and doubled its brewing capacity in 2011 onwards to tap the high demand of beer in the state due to liberal excise policy. Brands like Thunderbolt and Cobra beer are manufactured at this plant.
3. United Breweries promoted by Vijay Mallya has set up a factory at Naubatpur with a production capacity of 12 million cases at a cost of Rs 200 crore. The Kingfisher brand of beer is one of the highest selling brands of the UB. The third beer factory running is at Paliganj where Carlsberg beer and other products are manufactured.
4. The ban means that no new IMFL factory will come up in Bihar but the existing one will face no problem. However, they will not supply in the state.
5. This is a big blow for the beer firms as figures say the yearly off take of beer by liquor vends across the state till March, 2016 was around 250 crore cases (each case has 12 bottles) while the yearly off take of whisky was around 5 lakh cases (each case has 12 to 24 bottles).
6. A total of 222 liqour labels had seen sales, which has now come to a close.
7. This means, the government’s bid to shore up Rs 29,730 crore in current fiscal year 2016-17 would take a big hit as there would be a big shortfall from excise and related VAT on liquor products.
8. Though the government has kept a target of generating Rs 29730 crore with sales tax likely to earn Rs 13,700 crore ( 47% of the total tax revenue), there are chances that the collections would be far less.
6 Apr. 2016