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. Vijay Mallya may step down as United Breweries chairman
According to the 2009 shareholder agreement between Mallya and Heineken, the former has the right to choose his successor. While Mallya has been vocal about his intention to repay dues to banks, he will be unable to challenge the wilful defaulter tag as of now. "Yes, this definitely debars Mallya as chairman. We will obviously have to discuss this and Heineken will discuss this with Mallya as a shareholder," said a UB director. "Some of our board members are travelling, so we will take a call as soon as possible.
This also means Mallya would have to step down as chairman of Bayer BSE -0.92 % CropScience, which is said to have identified a successor in anticipation of the development, said executives aware of the matter. Banks are seeking more than Rs 9,000 crore in dues stemming from loans made to Kingfisher Airlines BSE 3.03 %, which Mallya founded. Mallya is seeking to settle with the banks and has denied allegations of wrongdoing. State Bank of India had continued to lend to UB until recently although it had termed Mallya a wilful defaulter. According to Reserve Bank of India guidelines, banks can't lend to companies with willful defaulters on their boards. SBI had done so on the grounds that UB hadn't defaulted on any loans, executives said.
The notification by the Securities and Exchange Board of India ( Sebi ) empowers board members who could otherwise find it hard to ask high-profile chairmen to step down, said Shriram Subramanian, founder of InGovern, a proxy advisory firm. It will be up to Heineken to take the next step and work with Mallya on succession, he said.
Heineken declined to comment. Some of UB's independent board members couldn't be reached. There was no response to an email sent to Mallya. At UB's last board meeting, Heineken and the board had decided to support Mallya as chairman after he addressed their concerns and reassured them that he was in negotiations to repay the bank loans. Independent board members had told et that the company had done well and there was no corporate governance issue that had impacted the company owing to Mallya's troubles. The current agreement between Mallya and Heineken envisages that he or his nominee will be chairman. Both sides have three directors each on the board. Since 2009, when both sides owned 37.5% each, Heineken's stake has risen to 42.4% and that of Mallya has dropped to 32%. According to an informal understanding between Mallya and Heineken, the latter has first right of refusal if Mallya sells shares.
31 May. 2016