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.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
India. UBHL seeks a month’s time to file results due to Vijay Mallya cases
In a letter to leading bourses NSE and BSE, United Breweries (Holdings) Ltd (UBHL) said it is being “hindered from complying with requirements” of submitting its audited standalone results for 2015-16 by May 31.
The SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 mandates a company to file financial results within 60 days of the end of every financial year.
“As you may be aware, Kingfisher Airlines, a group company of UBHL, is in debt to several banks. In this regard, Vijay Mallya, Chairman of UBHL, has made a settlement offer before the Supreme Court to the consortium of banks headed by SBI,” the company said in the letter.
The settlement offer is under consideration by the consortium of banks. A part of the substantial settlement amount to be paid to the consortium of banks is to be met by monetising certain assets of the UBHL, it added.
UBHL said the Supreme Court in its last hearing on April 26, referred the matter to the Debt Recovery Tribunal, Bangalore, to hear and decide on it within two months. The first hearing before DRT will commence on June 2.
“Due to uncertainties resulting from the background discussed above, UBHL is being hindered from complying with the requirements of finalising the annual accounts and filing financial results within the prescribed 60 days from the end of the financial year,” the company said.
Terming its current situation as “extraordinary circumstances which are not in its hands”, the company added: “We request you to grant UBHL time up to July 31, 2016 in order to allow us to appropriately finalise the annual accounts and submit the financial results.”
UBHL is the holding company of beleaguered industrialist Mallya, who is wanted in India as lenders seek to recover dues owed by Kingfisher Airlines. His financial troubles began to mount after Kingfisher Airlines had to be grounded under big losses and huge debt.
Mallya recently signed a lucrative exit deal with Diageo, to whom he had earlier sold a majority stake in United Spirits, and said he intended to spend more time in England.
24 May. 2016