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.
San Miguel Brewery Hong Kong posted results for first fiscal quarter 2016
‘Our Hong Kong operations posted a strong recovery in the first half of 2016, as operating losses before net finance costs were reduced by 75 per cent, with total sales volumes growing by 5 per cent,’ noted the company in its filing.
Improvements in loss were noted as due to ‘closer monitoring of discounts, reduction in the cost of delivery through process reengineering, and the consolidation of warehouse operations’.
The group’s Macau operations also recorded better-than-expected results.
‘The company was able to buck the industry trend in Macau,’ notes the filing. This was due largely to sales volume growth of 4 per cent ‘through increased participation in on-premise outlets’.
Sales in the surrounding region saw declines, as noted in the Guangzhou subsidiary of the company, which saw a decline as ‘the beer industry in South China contracted,’ notes the filing.
However, the launch of new brands in the past two years, namely San Miguel Cerveza Negra and Red Horse Beer, ‘have been well received by the market’ in Hong Kong, notes the filing. Both the Negra and Red Horse brands have seen 38 per cent and 93 per cent volume growth year-on-year for the HKSAR.
‘We remain optimistic about our performance in the next six months,’ notes the filing. ‘We are confident that the plans and programmes we have put in place will ensure we put the right products in the right markets’.
7 Sep. 2016