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 Brewery becomes Heineken Vietnam Brewery
There are no changes to the shareholding structure between the two stakeholders in the joint venture. The Saigon Trading Group (Satra) continues to hold 40 per cent while Heineken Asia Pacific partner still holds 60 per cent.
“The new image of Heineken Vietnam Brewery will be introduced in the Asia Pacific region and no changes will be made to management and organizational structure,” said Ms. Le Minh Trang, Chairman of Heineken Vietnam Brewery and General Director of Satra.
The company will preserve its business and production models as well as the property rights on its all brands, which include Heineken, Tiger, Larue, BGI, Bivina, Desperados, Affligem and Strongbow Cider.
According to Mr. Leo Evers, Managing Director of Heineken Vietnam Brewery, products under the old brand name will continue to be distributed and their quality will remain unchanged.
With annual profit averaging around $186 million and State budget contributions $573 million, many have asked whether Heineken has its eyes on Satra’s shareholding in the joint venture, with its first step being to change the brewery’s name.
In 2012 Heineken spent $6.3 billion on purchasing Fraser and Neave’s 40 per cent holding in Asia Pacific Breweries - the maker of Tiger beer and also one of the largest brewers in Southeast Asia. According to Euromonitor figures, more than 80 per cent of Vietnam’s beer market is held by Sabeco, Heineken and Habeco.
The company now ranks second in the domestic market with output of 729 million liters in 2015, following the Saigon Beer Alcohol Beverage Corporation (Sabeco) with 1.38 billion liters, according to figures released by the Vietnam Beer Alcohol Beverage Association (VBA).
Heineken Vietnam Brewery surpassed the Hanoi Beer Alcohol and Beverage Corporation (Habeco) last year to take second spot.
Heineken Vietnam Brewery has four breweries in Vietnam, in Ho Chi Minh City, Da Nang, and Quang Nam and Tien Giang provinces.
Heneiken Asia Pacific also operates in northern Vietnam through the wholly-owned Asia Pacific Brewery Hanoi Limited Company (APB).
Heineken, the world’s third largest brewer, has recently announced Vietnam to be among its three Asian markets with potential for outstanding growth, joining Cambodia and Indonesia.
Vietnam’s beer market saw output of 1,323.7 million liters in the first five months of 2016, a year-on-year increase of 5.7 per cent. Production in May reached nearly 309 million liters, an increase of 1.9 per cent compared to May last year.
Sabeco had achieved its production 505.5 million liters this year by the end of May and Habeco’s had reached 225.7 million liters.
5 Aug. 2016