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. United Breweries down over 2% on Vijay Mallya exit talks
Mallya-led UB Group is already being probed by Sebi for suspected violation of various securities markets regulations including about disclosure and related party transactions, while a 'wilful defaulter' tag has made it difficult for the beleaguered businessman to continue on boards of listed firms.
The shares of United Breweries Ltd, where the UB Group no more has majority stake but remains a co-promoter along with global giant Heineken group, slumped 2.11% to settle at Rs 745.35 on BSE.
Intra-day, it slipped as much as 2.67% to Rs 741, as market was rife with speculation that a board meeting could be held soon where Mallya would be asked to leave.
On NSE, it fell by 2.44% to close at Rs 743.45.
Mallya, who is said to be in London while arrest warrants have been issued for him back home, is said to have attended the last board meeting of the company through video- conferencing after which some directors of the company said they have full faith in him.
This may not have gone well with the regulator and other enforcement agencies, as rules do not allow a person classified by banks as a 'wilful defaulter' under RBI norms to continue on the board of any listed company.
Surprisingly, shares of another listed company of UB Group, United Breweries (Holdings) Ltd, rose by 4.46% to Rs 22.25 on BSE, even as the company today disclosed an attachment notice issued by Enforcement Directorate and said it is seeking legal advice to take appropriate steps.
Various listed firms of the Group have in the past been found to have violated listing and disclosure regulations of Sebi, while the regulator is also probing the group for other violations including for related party transactions and alleged diversion of funds for undue benefit to the promoters.
Besides, the Sebi norms do not permit wilful defaulters to hold board positions at listed companies.
Mallya recently resigned as Chairman and Director of United Spirits, after striking a sweetheart deal with Diageo, the new contolling owner of the erstwhile flagship company of his group.
17 Jun. 2016