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4-2017

Global hop market

A 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 Russia

Germany 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.

Beer Business (Pivnoe Delo) #1-2009

Production and market of beer in Russia 2008

The situation in the industry and beer market has been unstable for three years already. After a dynamic growth in 2006-2007 years, the year 2008 brought about stagnation for beer consumption and production in Russia. The previous year was a succession of problems. In particular the leap of producers’ sales prices (who had several objective reasons), poor weather and the economic crisis stood in the way of gradual leveling of market development rates.

Read this article   (with Google translator)

Kyrgyzstan: perspectives of the branch and market

Beer production and market in Kyrgyzstan Republic is forming and has a big development potential. This is confirmed by comparatively low consumption per capita and substantial share of inexpensive beer in the overall sales volumes. Currently Kyrgyzstan market is dominated by Russian and Kazakh companies, and in the past year import supply growth amounted to 26% in money terms. However the local brewers manage to modernize production, develop profitable market segments and prepare for expansion into the perspective regions of the country.

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Moscow Brewing Company: plant for distributor

Detroit Investment fund has always been successful, both at beer market operation and in investment projects realization. “PIT”, “Syabar” and “Vladpivo” all these companies were quite fortunate and were bought by world’s beer giants on the tide of market share growth. The new DI project is targeted at balancing import business, particularly in the conditions of economic crisis and ruble devaluation. “Moscow Brewing Company is a strategic project and built the plant not to sell later” - says Yevgeniy Kashper, co-owner of DI. He is sure that the Russian consumer can change her attitude to mass-market products, willing to pay a fair price for them, not including the promotion costs. Nowadays beer brands must be promoted not by advertising but by a balanced trade system and value for money products.

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Ukrainian premium

Roman Stepanovskiy, brand manager of “Obolon” entertains a possibility of changes in Ukrainian market price segmentation. The crisis will make the price factor more important, which can lead to growing of mainstream segment at the account of premium segment. However moving of expensive brands to a cheaper segment is unlikely. “Obolon” carries on developing the existing premium brands i.e. youth’s beer “hike” and business beer Magnat, but at the same time it has launched its anicrisis brand Zibert.

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24 Jul. 2009

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