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. Beer Hug
Kolkata's GenY is gulping down beer throughout the year, and not only the same old brands. Thanks to the easy availability of globally renowned labels and increasing disposable incomes, drinkers are increasingly appreciating the distinctive quality and taste of the best beers, and there's a noticeable shift towards the premium segment. "Despite not being a high-volume market, Kolkatans have shown a tremendous affinity to almost all top-level beer brands, like the Delhi and Chandigarh markets," says Samar Singh Sheikhawat, senior vice-president (marketing), United Breweries Ltd (UBL), which controls over 50% of the beer market in India.
"The 'premiumization' of Kolkata's beer market happened in the last three-four years. As the beer market is a 99% male bastion, the city's young-urban cosmopolitan males are gulping down premium domestic as well as imported beers like never before," he adds. According to him, the eastern region is neither sophisticated nor a logistically advantageous market for premium beer-makers. "However, these do not have a big impact on the price points of the premium beers available here," he adds. An upbeat UBL expects its super-premium beer brands to contribute 15% to its total sales by volume and 25% by value in the next five years.
Gautam Singh, associate director at The Park (bar division), feels the City of Joy is slowly but steadily catching up with the beer culture of Bengaluru or Delhi. He says the influx of international quality beers did the trick. "Even a decade back, only a couple of good top-quality beer brands were available on countertops. The freshness of a draught beer [served from a pressurised cask or keg rather than from a bottle or can] has an immense appeal for youngsters. And it doesn't die down in winter, which only stays for a month in Kolkata. Around 25% of our total alcoholic beverage sales comes from beer during this period. In summer, it just goes up to 35%," explains Singh.
Youth connect and Kolkata's year-long sultry weather boost beer consumption here, feels Snigdha Kumar, area sales manager (institutional beer sales-east), at Kingfisher. "Winter isn't really an off season for us in Kolkata, as all big festivals — such as Durga Puja, Christmas and New Year are during this period. And flaunting an imported or premium beer bottle is now a style statement inside a bar, lounge or nightclub. Besides Scotch whisky, premium beers are considered an aspirational drink these days," she explains. "Besides floating customers, a bigger section of first-time drinkers are also picking beer. Premium beer forms around 25% of the total Kingfisher lager beer sales in Kolkata. We are witnessing as much as a 50%-60% year-on-year jump in beer sales in this megacity," she adds.
Premium mild beers have been around in India for some time now. But the difference now is that more brewers are making them in India rather than importing them, as the segment is growing ahead of the 'strong' category, mainly in metro markets. While Heineken (the costliest India-made beer), Kingfisher Ultra, Carlsberg and Miller rule the premium beer domain, Kingfisher Ultra Max, Budweiser Magnum and Peroni are the most sought-after domestic premium brands in terms of price points. The other two that form the 'Big Three' of beer — SABMiller (maker of premium Italian brand Peroni Nastro Azzurro) and Anheuser-Busch InBev, have also begun manufacturing their flagship premium light brands in India. So does Mahou, the numero uno Spanish beer maker. With an eye on more revenue and fresh beer, microbrewery licences are currently given only by a few state governments, including Bengal.
Erik d'Auchamp, CEO, Mahou India, says: "Bengal, especially the Kolkata market, has a very interesting consumer base because of its high growth potential. With an increasingly urbanized and sophisticated consumer group that is looking for choice, the megacity has a good split between off-premise and on-premise consumers. So, it gives consumer a place where he can experience the brand both off and on premise. An active on-premise consumer base here ranges from permit rooms to clubs to high-end accounts. The on-premise beer sales here weigh more than other parts of the country." Mahou India wants to expand towards the suburbs. "As many as 400 outlets in Bengal currently sell our beer, which we plan to increase over a period of time," d'Auchamp says. Beer is a social drink and beer enthusiasts in Kolkata have an affinity to quality products, believes Carlsberg India marketing director Mahesh Kanchan. "In Bengal, including Kolkata, Carlsberg India is the leading player in the premium industry. We've seen a significant growth and success of our premium beer brands — Carlsberg and Tuborg."
Premium beers are being embraced because of the quality of beer, the enhanced imagery and also because the relative price index of a premium beer is not too high compared with regular beers. Nationally, the premium segment is growing at a CAGR (compound annual growth rate) of around 30%," adds Kanchan. In 2014, Carlsberg India registered 42% growth in India, with an 11% volume market share (excluding Tamil Nadu), and is looking to establish and grow beyond this benchmark this year. The entire beer industry in India has been experiencing a growth rate of about 10% in the past decade. A study — Indian Beer Market-2013-17 — released by Niir Project Consultancy Services, says it would reach a size of 452 million cases by 2017 with a 12% growth.
Favourable demographics, rising disposable incomes, urbanization and rising acceptability of drinking have brought the winds of change for the industry, coupled with the mushrooming of beer cafes and microbreweries, the study adds. All India Brewers Association feels the growth in the premium segment is pegged at 20%-25%, with urban centres accounting for a large part of the consumption. Nitish Saraf, the owner-cum-MD of Palazzo, the lounge bar-restaurant in Alipore, feels the growing craving for beer is to do with its 'straight drink' tag.
"It's not so strong or hard a drink. So, it has a certain charm with youngsters. With the availability of imported as well as top-end Indian labels in the market, it has shed its 'not-so-prestigious-drink' label," Saraf adds. To keep its sales momentum up and steady even in winter, some of pubs and lounges are offering lucrative discounts on both premium and draught beer. "The spurt of the day-drinking culture also has also had an added impact on the beer sales in Kolkata," Saraf explains. Beer is very economical for youngsters too. Happy hours at bars and lounges are actually luring youths to have beer as a 'meeting up/hanging out' drink. "With an exposure to foreign brands and Western pub culture, college-goers are gulping down imported and draught beers more than ever," points out mixologist Irfan Ahmed, who has been privy to drinkers' choices over the last few decades in Kolkata.
Ahmed says the beer market has indeed gone through a sea change in the city. "The market has grown a lot, now that there's the choice of picking up big labels at any middle- to high-end restaurant and bar," he adds. Pratap Daryanani, partner at Oasis, a restaurant on Park Street, feels beer's low alcohol explains its year-long popularity with the youth. "From impromptu gatherings to cocktail parties, the drink has found its way to every table top," he says. Indian consumers, however, also look at value for money, and it's no different when it comes to beer. So, it is primarily a 'strong beer' market. Some 85% of the country's drinkers liked their beer strong in 2014 (alcohol content between 5% and 8%, against less than 5% in mild beers), according to a recent study by the All India Brewers Association. Kingfisher dominates the market, followed by Haywards 5000, Knock Out and Tuborg. UB's Kingfisher Strong (8% alcohol) is India's best-selling beer brand.
Imported beers like Corona, Coors Lite and Stella Artois — which have already made inroads into elite pubs, bars and fine-dining restaurants — form just 0.35% of the entire beer market in India. According to an industry estimate, out of 282 million cartons of beer sold in India last year, only one million cartons of imported beer were consumed across the country. And Kolkata is not an exception to this market dynamics.
14 Дек. 2015