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.
Vietnamese breweries fear foreign groups will swallow domestic market
Le Hong Xanh, deputy general director of Sabeco, the largest Vietnamese brewery, told Sabeco’s shareholders at a meeting that the company’s market share in 2015 increased by two percent compared to 2014, to 43 percent.
However, Xanh also said Sabeco would have to face challenges ahead as more and more foreign brewery groups have come to Vietnam to scramble for the pieces of the lucrative market.
Xanh and other Vietnamese breweries have every reason to worry about the presence of foreign brewers in Vietnam. Frans Eusman, President of Heineken Asia Pacific, told the local press that Heineken has been pouring money into Vietnam because the country is the second most profitable market for the brewery, after Mexico.
Not only Heineken, a series of other big breweries in the world consider Vietnam a fertile land to exploit. Thai manufacturers are believed to begin implementing a plan to penetrate the Vietnamese market that began five years ago.
|Not only Heineken, a series of other big breweries in the world consider Vietnam a fertile land to exploit. Thai manufacturers are believed to begin implementing a plan to penetrate the Vietnamese market that began five years ago.|
Soon after Sabeco and the Ministry of Industry and Trade submitted to the government the plan to sell a 53 percent stake and reduce the state’s ownership ratio from 90 percent to 36 percent, ThaiBev, Thailand's largest brewery, expressed its willingness to buy 40 percent of Sabeco’s stake.
Analysts commented that if ThaiBev can acquire Sabeco, the company with the largest market share, it would be able to control the Vietnamese market.
“If Thailand can acquire Sabeco’s stakes, they will surely control not only the brewery’s output, but the market share as well,” said Nguyen Van Viet, chair of the Vietnam Beverage Association (VBA).
Other foreign groups, namely Ashahi from Japan, Heineken from the Netherlands and SAB Miller from the US also showed interest in Sabeco’s stakes.
Mikio Masawaki, general director of Sapporo Vietnam, said that they world’s breweries had chosen to expand their business because the market showed a high and stable growth rate.
A VBA report showed that in 2015, Vietnam consumed 3.4 billion liters of beer, an increase of 10 percent over the year before and 41 percent over 2010.
Vo Thanh Ha, general director of Sabeco, said there were some changes in Vietnamese taste with more high-end products consumed. This will be both an opportunity and challenge for domestic breweries because they still don’t have high-end products.
Meanwhile, foreign breweries want to conquer the market segment. Beer imports from Germany, Czech Republic, Belgium, Japan and Mexico all have been available in Vietnam, while products with Shingha and Ashahi brands from Thailand can be found easily everywhere.
19 Jul. 2016