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.
Budweiser Is Having a Ball in Russia
In a country where brewing output has fallen more than 30 percent since 2008, the self-proclaimed King of Beers is growing sales at a double-digit pace, according to the head of owner Anheuser-Busch InBev NV’s Russian unit.
So what’s the deal? Unlike in the U.S. and western Europe, Budweiser is pitched as a premium brand, boosting its appeal to a younger, more discerning Russian drinker. Yet it isn’t as expensive as some imported equivalents. By producing locally, ABI has been able to avoid the impact of the ruble’s drop against the dollar on the price of imported beers. Bud became Russia’s third-largest premium beer brand by volume last year, according to Nielsen estimates, placing it ahead of Heineken.
“Bud is a truly premium brand in Russia in terms of both pricing and user perception,” ABI country head Dmitry Shpakov said in an interview in his Moscow office.
ABI’s fourth-quarter results showed how the growth of premium brands such as Bud are helping its performance in Russia. Its beer volumes there declined by mid-single-digits in 2015, but rose by mid-single-digits in the final three months. By contrast, Budweiser lost share in the U.S. amid the growing popularity of craft brews.
Since choosing Russia as Bud’s first market for international expansion in 2010, ABI has ramped up production at a factory near Moscow. That’s enabled it to avoid increasing prices by as much as imported brews. At 61 rubles ($0.87) a bottle, Bud is less than half the price of ABI’s imported Spaten brand, which costs 175 rubles. Yet Bud still retains its international prestige, being priced about 30 percent higher than ABI’s bestselling mass-market brand Klinskoe.
“Several years ago, production volumes of Klinskoe used to be several times higher than Bud in Russia,” Shpakov said. “Since then, Bud has caught up and now the difference is not that big.”
Key to Bud’s growth has been its increased sponsorship of sporting events after the country eased advertising limits for brewers last year. The brand is sponsoring the 2018 soccer World Cup and the preceding 2017 Confederation Cup. In addition, many Russians have a preference for a global brand as part of their lifestyle, Shpakov said.
Yet, Russia remains a tough place to do business, as AB InBev and Carlsberg A/S have shown by closing plants in response to falling consumption. The industry is calling for at least a partial reversal of the increased taxes that have hurt it over the last eight years.
“This would be mutually beneficial as breweries would be able to boost output, ultimately paying more in excises,” Shpakov said.
30 Мар. 2016