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.
Vietnam. Will national brewers survive new taxes?
Decree 108/2015 / ND-CP and Circular 195/2015 / TT-BTC will adversely affect beer producers by changing the tax basis for how the special consumption tax (SCT) is collected. In accordance to the new rules, the tax is levied not on the cost price of the parent company but on that of subsidiaries.
The tax basis change is aimed to regulate the activity and increase transparency of big companies, such as Sabeco, Habeco, and VBL, who by means of many subsidiaries and distributors reduced the final sum of the excise.
The growth of the tax burden can significantly aggravate already difficult financial situation of the brewers. For instance, Sabeco pretax profit over the first 4 months of this year fell by 27% to 1,215 bln dong. Sabeco’s management at the annual meeting arrived at the decision that the company’s profit decline is mainly connected to the increase of the special consumption tax from 1 January 2016.
Despite the fact that the revenues and sales volume went up, the excise rise from 50 to 55% was the main reason for the company’s profit plummeting.
The tax increase resulted in the retail price growth and, in the long run, led to sales decline particularly concerning the local producers , as their production is targeted at more economizing consumers.
For the same reason, the expected profit in 2016 is to decline by 5%, amounting to 3,436 bln dong.
12 Jul. 2016