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.
Sapporo May Spend $1.5 Billion for Acquisitions to Expand Outside Japan
The Yebisu and Sleeman maker aims to expand in North America, Southeast Asia and Japan, where it can build on existing businesses, incoming President Tsutomu Kamijo said in an interview in Tokyo. “More and more wealthy people are emerging in Southeast Asia,” he said. “There is no doubt that Vietnam will expand.”
Sapporo, which plans to spend the amount between 2012 and 2016, is among Japanese brewers turning to overseas markets as a shrinking population dims domestic prospects. The 134-year-old company agreed this month to raise its stake in Pokka Corp. to increase sales of non-alcoholic beverages and reduce reliance on alcoholic drinks, which generate almost 80 percent of revenue.
“Japanese companies should plant seeds overseas to develop growth drivers while they can still generate cash in their home market,” said Kenichiro Katahira, an analyst at Tokyo-based Rating & Investment Information Inc. “Sapporo’s soft-drink business may become another pillar for earnings with the Pokka partnership.”
Sapporo, whose soft-drink division accounts for less than 10 percent of sales, rose 1.1 percent to 382 yen on Feb. 18 and has gained 3.8 percent this year, lagging behind the 8.3 percent climb of the broader Topix index. The stock slid in Tokyo trading in each of the past three years.
Japan’s fourth-largest brewer by volume “will consider all acquisitions that can increase our profit,” said Kamijo at Sapporo’s head office, without elaborating.
The company plans to open a brewery in Vietnam this year and is considering boosting production capacity at its Sleeman Breweries Ltd. unit in Canada, Kamijo, 57, said in the interview on Feb. 16. Sapporo is still seeking to buy a premium beer brand in the U.S., he said, after first announcing that plan in July.
“It’s sort of different from the situation in the Vietnam, but we can’t ignore the fact that the U.S. population is increasing by 3 million people every year,” said Kamijo, who is Sapporo’s managing director and will be promoted on March 30.
Sapporo will pay 21.3 billion yen to companies including Meiji Holdings Co. and Advantage Partners LLP to increase its Pokka stake fourfold to 85.5 percent, and will merge its operations in April 2012, the brewer said Feb. 10.
Pokka sells Aromax canned coffee and flavored tea drinks in Asian markets including Singapore and also runs the Tonkichi chain of deep-fried pork-cutlet restaurants in the city.
“Pokka will open up our opportunities in Southeast Asia as we can also offer soft drinks and not just beer,” Kamijo said.
Sapporo aims to improve the companies’ operations in Japan through joint product development, new restaurant formats as well as cutting production and distribution costs, he said.
The company that sells Black Label beer and Ocean Spray cranberry drinks in Japan set aside 65 billion yen for the two years ending December 2011 to fund its growth strategy, including buying rivals, it said in February 2010.
The brewer forecasts sales to grow 24 percent to 482 billion yen this year. It estimated net income to drop 44 percent to 6 billion yen after a one-time gain of 16.6 billion yen last year.
Sapporo targets net income of 8 billion yen and revenue of 519.5 billion yen next year. The figures exclude amortization of 1.4 billion yen for the Pokka stake acquisition, the company said Feb. 10.
Japan’s population has fallen since 2006 and may decline to about 125.2 million by 2014, according to data compiled by Bloomberg.
Asahi Breweries Ltd. said Feb. 8 that it may spend 400 billion yen on acquisitions by 2012 to spur overseas sales. Asahi last year agreed to pay A$364 million ($368 million) for Australian soft-drink maker P&N Beverages, and Kirin paid S$1.34 billion ($1.1 billion) for Temasek Holdings Pte.’s 14.7 percent holding in Fraser & Neave Ltd., the owner of Tiger Beer.
Sapporo trails Asahi, Kirin Holdings Co. and Suntory Holdings Ltd. by domestic sales volume for Japanese beermakers.
Sapporo had a 0.4 percent share in the North American beer market last year, helped by a 4.7 percent share in Canada with its Sleeman unit, according to Euromonitor International.
20 Фев. 2011