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.
Carlsberg Sales Fall Flat as Brewer Cautions on Russia, Asia
Beer volumes fell 2 percent, missing analysts’ estimates, as declines in Asia and western Europe offset a temporary rebound in its troubled Russian unit, the world’s fourth-largest brewer said in a statement Wednesday. Carlsberg maintained its full-year profit forecast but that wasn’t enough to buoy the shares, which declined as much as 3.5 percent in Copenhagen, the most in almost three months.
The company’s 20 percent growth rate in eastern Europe is unsustainable,” as it was boosted by an easy comparison with the same period a year ago, Chief Executive Officer Cees ’t Hart said on a call with reporters. “The CEO’s comments about the current Russian pricing environment were quite cautious,” Eddy Hargreaves, an analyst at Canaccord Genuity, said by e-mail.
Revenue growth in eastern Europe was double what analysts estimated, as volume rebounded in Russia after Carlsberg lowered the price of its namesake lager. The beermaker also continued a cost-cutting drive by announcing a shift of 300 back-office jobs to India. The quantity of beer sold in Asia, which Carlsberg has touted as a profit driver, could decelerate, Christopher Warmoth, the company’s new head of strategy and a former regional director for Asia, said in an interview.
Twelve out of 15 divisions are spending less than their target budget, the company said, with further brewery closures planned in China. Beer volumes declined 1 percent in Asia, hurt by a decelerating market.
The shares fell 3.2 percent to 617.5 kroner at 11:46 a.m. in the Danish capital, trimming their gain this year to 0.9 percent.
Sales in western Europe, which accounts for two-thirds of the company’s revenue, declined by 3 percent after retailers including British supermarket chain Tesco Plc delisted Carlsberg products. That missed the analyst estimate of a 2.6 percent drop.
The company sees a negative foreign-exchange impact of 550 million kroner ($84 million) this year compared with a previous expectation of 600 million kroner. Net revenue rose 2 percent on an adjusted basis to 13 billion kroner.
12 May. 2016