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.
In 2015 Tsingtao profit fell in all regions of China, only export grew
As the net profit of the company consists of incomes from different regions, let us consider which of them had the biggest impact on the financial performance.
The biggest decline was observed in Dongnan Region which is responsible for production and distribution in Southeast China.
The revenue there fell by 15.59% and the loss amounted to 25.78 mln yuan. This region provides 8.54% of the company’s sales.
Tsingtao Brewery incurred substantial losses in Huanan Region, where the revenue came 11.45% down, while the net profit decreased by 75.54%. This region accounts for 14.1% of businesses’ profit in South China. Here the company is quite poorly represented as compared to competitors.
Though in Shandong Region the revenue decline amounted to only 1.82%, this influenced Tsingtao performance substantially as Shandong region and surrounding regions account for 50.22% of the net profit and 75.18% of the revenue.
Here Tsingtao positions are among the leading ones as in Shandong province 60% of the production accrue to the company. The company’s products have equally wide representation in Shaanxi (78% of the local beer output) and Shagnhai (70%).
|Revenue||Net profit||Revenue||Net profit|
|Shandong Region||14 136 469 427||1 478 118 811||13 879 320 963||1 211 966 258|
|Huanan Region||4 401 431 421||277 405 568||3 897 629 068||67 857 114|
|Huabei Region||4 185 880 314||494 143 474||4 175 305 898||433 010 603|
|Huadong Region||3 029 370 253||-267 450 996||2 791 751 756||-462 276 846|
|Dongnan Region||2 797 425 636||76 286 842||2 361 332 805||-25 779 599|
|Hong Kong, Macau and other overseas||493 720 960||26 794 316||521 019 539||42 682 094|
|Finance Company||2 725 072||184 801 246||7 090 439||175 741 684|
|Unallocated||2 298 083||-239 565 940||1 235 572||157 522 512|
|Elimination||—||-11 001 254||—||11 319 694|
|Total||29 049 321 166||2 019 532 067||27 634 686 040||1 612 043 514|
|Revenue growth, %||Net profit growth, %|
|Hong Kong, Macau and other overseas||6%||59%|
Such dramatic profit decline of the company on all the country regions could not be compensated by а 5.53% sales growth in Hong Kong, Macau and overseas because their share in Tsingtao net profit is 1.89% only.
31 May. 2016