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.
India. Carlsberg plans to set up new brewery as sales rise 20 per cent
The company plans to set up a brewery to support growing sales and compensate for shutting down an operational plant in Bihar after the state introduced prohibition.
"India continues to perform strongly and achieved 20 per cent volume growth in spite of the alcohol ban in Bihar. Also here, Tuborg remains an important driver of the growth. We achieved a record high market share in India in Q3 of 19 per cent," Carlsberg CEO Cees’t Hart said in an investors call on Wednesday.
Carlsberg is the third largest player in India, trailing market leader United Breweries which has 51 per cent share and SABMiller with 23 per cent share of the market. Unlike most other markets, where Carlsberg’s top seller is the milder version of lager, the brewer has been focusing on brands such as Tuborg Strong and Elephant in India because strong beer accounts for 80 per cent of country’s overall sales volume of 300 million cases.
The company registered the fastest growth among the top five brewers in 2015, with volumes rising by 18 per cent, as it benefited in part from innovation targeting local preferences for strong beer, according to Euromonitor. However, competition is set to intensify over the next few years with Heineken raising its stake in India’s largest brewer to control majority of UB while AB In-Bev’s acquisition of SABMiller has provided Budweiser, the second fastest growing top ten brands in India in 2015 after Tuborg, with a considerably extended distribution network.
Carslberg has been focusing on cities, keeping its brand portfolio limited and expanding its manufacturing footprint. It has doubled its reach to 40,000 outlets but maintained focus on the top Indian 140 cities in the past five years.
11 Nov. 2016