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.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Sri Lanka. No 100 percent tax waivers given to Beer Company: Finance Ministry
In a statement the ministry said a beer manufacturing company in the country which was fully affected by the recent flood has been provided the opportunity to import beer with taxes and other levies applicable to that of locally produced beer.
Full statement is reproduced below.
A Beer manufacturing company in the country which was fully affected by the recent flood has been provided the opportunity to import beer with taxes and other levies applicable to that of locally produced beer. There is no truth in the reports that was spread that this manufacturing company has been given concession for imports which would making a revenue loss of Rs 6 billion to the state.
The manufacturing plant and machineries of the M/s Lion Brewery Company at Biyagama was completely damaged due to the recent flood in the area. This company which pays excise and other levies of over Rs 25 billion annually to the government had made a request to the treasury for a tax concession for up to a period of three months until the new plant and machineries are installed for it to commence its normal production.
This company was manufacturing beer locally which was subject to an excise duty of Rs 190 per litre for alcohol volume less than 5 percent and Rs 315 per litre for alcohol volume more than 5 percent. Their annual production exceeds 106 million litre and the amount of taxes paid to the Treasury in 2015 was Rs 25.7 billion.
Since their manufacturing plant was fully destroyed they were unable to manufacture beer locally and they could not afford to import and sell the goods at the current market price given the fact that the import duties alone exceed the market price. The company had made a request for a waiver on excise duty and other levies to import consignment required for a period of three months. As of now the all inclusive levies for import of Beer exceeds Rs 700 per litre in addition to CIF cost of Rs 100 per litre. Accordingly, the import cost will exceed the market price compelling the company to give up the production. This will also make revenue loss to the government to the tune of over Rs 5 billion within the period of three months if the company is unable to maintain its market share.
Therefore considering all these facets the government in order to match the market price, permitted the company to import beer, required for a period of three months and impose taxes and other levies equal to that of locally manufactured beer at the point of importation instead of import taxes and other levies. Therefore there is no truth in the news to the effect that the company has been given import concessions and a loss of revenue incurred to the government.
5 Oct. 2016