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.
Japan. Kirin to buy stake in Brooklyn Brewery for craft beer growth
Kirin and Brooklyn Brewery will form a joint venture in January 2017 to roll out the Brooklyn brand in Japan, with plans to expand to Brazil, the companies said. Privately-held Brooklyn Brewery will issue new shares to Kirin Brewery Co., giving the Japanese company a stake of about 25 percent. They didn't disclose the value of the deal.
Kirin and other Japanese breweries have been experimenting with specialty brews as craft beer gains popularity in Japan. It's one of the few bright spots for the beer industry in Japan, where a declining population has seen consumption slump since 2001. Kirin is competing against some of the world's largest breweries to expand overseas, including a possible stake in Vietnam's top brewer.
"The current beer market is in a transition period," Takayuki Fuse, president of Kirin Brewery, said in a briefing in Tokyo on Wednesday. "We need to vitalize the market, need to make it attractive, or there's no future."
Kirin fell 1 percent to 1,684.5 yen by the close of trading in Tokyo on Wednesday, in line with the benchmark Topix. The shares have gained 2.3 percent so far this year, against the index's 13 percent drop.
Brooklyn Brewery, co-founded by Steve Hindy, a former war correspondent, and a banker, will remain an independent company with its management intact, according to a Kirin statement.
Brooklyn Brewery, based in the New York borough whose name it bears, is the 12th-largest craft lager maker based on 2015 beer sales volume, according to the Brewers Association. Craft breweries produced 24.5 million barrels of beer last year and posted $22.3 billion in retail sales, a 16 percent increase from a year earlier, according to the group.
"Brooklyn Brewery is a strong brewer in the U.S. and Kirin is a company that has cash to spend," Tony Bucalo, an analyst at HSBC, said by phone. "American craft is one of the hottest categories in beverage alcohol and Kirin's buying into a successful and well-managed partner on the ground."
Kirin and Brooklyn Brewery are considering developing original products for the Japan market and starting a restaurant business. They also plan to expand the Brooklyn Brewery brand in Brazil, with details of the business and its roll-out still being discussed, according to Kirin's statement.
The Brooklyn deal would follow Kirin's purchase of a 33 percent stake in Japanese craft label Yo-Ho Brewing Co. in 2014. To draw patrons of specialty beers, Kirin opened two brewpubs last year where beer is brewed on site.
Other major Japanese brewers including Asahi Group Holdings Ltd., Suntory Holdings Ltd. and Sapporo Holdings Ltd. have also sought to jump on the craft beer bandwagon amid their rising popularity in Japan and worldwide. Asahi sees potential to boost sales of its Super Dry beer in U.S.
13 Oct. 2016