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. Maharashtra alcohol makers to slash output
The Aurangabad cluster happens to be a key one for alcoholic beverage makers, as are Alwar in Rajasthan and Medak in Telangana. There are 16 distilleries and breweries in the Aurangabad belt, including those of Carlsberg, SABMiller, United Breweries (UB), United Spirits Ltd (USL), and Radico Khaitan.
While Carlsberg, USL, and Radico Khaitan were not available for comments, a spokesperson for SABMiller India said, "We are following all directions laid down by the authorities to manage the situation. In Aurangabad, as in our other operations, we are adopting innovative technologies and implementing best practices to reduce, re-use and recycle the water.” An email to UB got no response till the time of going to press.
Sector sources say a production cut is imminent, as it takes five litres of water to produce a litre of beer. A 60 per cent cut, they say, will cripple production, especially during the peak summer season when capacities normally run full steam. Typically, beer makers derive a third of annual sales during summer.
The Indian beer market in terms of volume sales is estimated to be 284-285 million cases. One case consists of 12 bottles of 650 ml each. UB, SABMiller, and Carlsberg are the top three in India, with an estimated market share of 52 per cent, 27 per cent, and 15 per cent, respectively.
Alcohol and beverage makers privately say they are soft targets, owing to the negative perception of the business. "There are other heavy users of industrial water but I don't think the attention is on them to the extent it is on us," said a senior official of a top beer company. Some of the other heavy users of industrial water in India include thermal power plants, cement, iron and steel units, bottled water and soft drinks, and apparel.
While some breweries are believed to be sourcing water from tankers for now, this is unlikely to be sustainable for long.
28 Apr. 2016