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 to sell stake in prized beer companies Sabeco and Habeco
The government will sell its entire 89.59 per cent stake in Saigon Beer Alcohol Beverage Corp. for US$1.8 billion and its 82 per cent holding in Hanoi Beer Alcohol Beverage Corp. for $404 million, according to a post on a government news website Wednesday. Saigon Beer, known as Sabeco, will be sold in two tranches in 2016 and 2017, while Hanoi Beer, or Habeco, will be divested this year, it said.
“This is the first time the government is very clear cut in saying goodbye to major companies completely, without any stakes left,” said Dinh The Hien, a Ho Chi Minh-based economist. “The government’s clear-cut determination matches its long-planned strategy to speed up state stake sales. But it also indicates how stressed the state budget is right now.”
Vietnam, which needs billions of dollars in infrastructure investments for highways to airports, has seen state revenue drop this year with plunging oil prices and a drought that has hurt agriculture production. The budget deficit for 2016 may exceed the planned ratio of 4.95 per cent of gross domestic product, according to National Financial Supervisory Commission.
Vietnam’s plan to slash holdings in companies dates back to the 1990s as a way to spur economic growth. The government’s privatisation plan fell short of its target in 2015, with 289 state-owned companies selling stakes compared with a goal of 514.
The process is “slow and behind schedule” due partly to executives’ concerns about their positions at these companies after the sales, Deputy Finance Minister Tran Van Hieu told Bloomberg last year.
The government plans to sell its Sabeco and Habeco stakes in auctions, according to the government post. Vietnam will offer a 53.59 per cent stake in Sabeco this year before its listing, and the remainder in 2017, according the government posting. Prime Minister Nguyen Xuan Phuc said August 29 that the listings of Sabeco and Habeco must be done prior to their state stake sales.
Vietnam’s beer-swilling culture has made Sabeco and Habeco among the government’s most-treasured assets.
Beer consumption in the Southeast Asian country jumped about 40 per cent in 2015 from 2010, according to the Vietnam Beer Alcohol Beverage Association. Vietnamese are expected to consume more than 4.04 billion litres of beer this year, the most in the region and up from 3.88 billion litres in 2015, according to Euromonitor International. Its citizens of legal drinking age, 18 and above, is expected to increase to 72.4 million by 2021 from 68.7 million this year, according to Euromonitor.
The country’s thirst for beer has attracted interest from foreign companies. Thai Beverage PCL, Asahi Group Holdings Ltd. and Heineken NV are among companies interested in Sabeco, according to Euromonitor analyst Andrea Lianto.
Heineken, which in July acquired a brewery in the port city of Vung Tau from Carlsberg A/S, has a 20 per cent market share, similar to that of Habeco’s, according to Nguyen Van Viet, chairman of the Vietnam beer association. Sabeco, brewer of Saigon Beer and 333 Beer, was Vietnam’s largest beer company with 40 per cent of the market share.
The decision to hold auctions is an effort by the government to be more transparent, said Tony Foster, a Vietnam managing partner for law firm Freshfields Bruckhaus Deringer LLP in Hanoi. It could also line up future sales including that of Vietnam Dairy Products JSC, Foster said. The company known as Vinamilk is one that foreign investors are most interested in, he said.
“If you can get these done on this basis, it sets the stage for the same thing for Vinamilk and then others,” he said.
2 Sep. 2016