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.
China. Tsingtao Brewery Fails To Acquire Xihu Beer
The parent of Xihu Beer, Asahi Breweries Itochu (Holdings), had in November last year, entrusted the management of its 55 percent stake in Xihu Beer to Tsingtao Brewery.
Following the entrustment, China Resources Breweries purchased a 45 percent stake in Xihu Beer and 16 related brands for 268 million yuan at end November last year.
In addition to gaining full control of Xihu Beer, China Resources Breweries acquired the entire equity of Huzhou Beer after purchasing a 25 percent stake in the brewer for 30 million yuan. The remaining shareholding of Huzhou Beer is held by Xihu Beer.
The acquisition will bring the total number of production bases owned by China Resources Breweries in Zhejiang province to eight.
Apart from this failure, the world's leading brewer AB Inbev had triumphed in the bidding war with Tsingtao Brewery for Henan Weixue Beer.
According to an analyst with Haitong Securities (600837), Zhao Yong, focusing on the mid to low-end beer market is crucial in the battle for market share as the room for growth in the mid to high-end beer market is limited. However, Tsingtao Brewery had been focusing its resources in the mid to high-end market.
Sales of Tsingtao Brewery’s major brands accounted for 60 percent of its total sales in the first quarter of 2011, up from 39 percent in 2008.
One of the main reasons for Tsingtao Brewery's lower than expected growth in its market share in recent years was that the sales growth of its three low-end brands were not up to expectations, added an industry analyst.
According to the company secretary of Tsingtao Brewery, Zhang Ruixiang, the company plans to increase annual sales to 10 million tons in three years, and had just obtained 200,000 tons of beer production capacities in Hangzhou, Zhejiang province, for about 100 million yuan.
Zhang said Tsingtao Brewery has seven billion yuan of cash on hand, and will not give up on its efforts to grow through acquisitions.
The cost of acquisitions had increased as there are not many brewers which meet its criteria of having 100,000 tons of production capacity, said Zhang.
4 Авг. 2011