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.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Younger audience drawn toward growing options of craft beers
"There's so much variety, more within beer than within wine," says Jerry Hauck, owner of Monk's House of Ale Repute, a nationally recognized beer bar at 420 E. Eighth St.
The nuances in beer aren't as subtle as those in wine, he says. "You don't have to be a beer aficionado to be able to taste the different flavors."
Craft beers - the only part of the beer industry that's growing, Hauck says - have expanded the options for quality and taste in beer, those in the industry say.
So what makes these craft beers so much better? It's the complexity of flavors, including the beer's higher alcohol content, that make the difference, Hauck and others say.
Beer's flavor depends on the additives, such as the malt and hops, spices and the yeast variety. Beer is brewed from malted barley, hops, yeast and water. Fruit, wheat and spices sometimes are added for additional flavor. The yeast turns sugars in the malt into alcohol, and the hops provide bitter flavor and aroma.
Most craft beers are ales, while lagers are usually domestic beers with a low alcohol content and a crispy, light golden taste.
The development of craft beer has created a revolution of sorts, allowing breweries to experiment with the brewing process and creating a following of beer fans who savor and taste beer like some people appreciate fine wine.
"Beer has definitely taken a different turn in the industry right now. ... There's a lot more going into the craft beer," says Justin Johnson, beer manager at GoodSpirits Fine Wine & Liquor.
Even the packaging of beer has changed to reflect the popularity of craft beers. Buying one can of beer used to be atypical, Hauck says, but now, "because beers have distinct flavors, people want to buy one beer of each style."
Large-format artisanal craft beers, sold in champagne-like bottles in sizes from 22 ounces to 750 milliliters, also cater to beer drinkers looking to savor the tastes of beer, says Tom Slattery, general manager at JJ's Wine Spirits & Cigars on South Western Avenue. The store's options in the larger formats have expanded within the past two years.
For example, the larger amount works well during a beer and food pairing event. "Because of the evolution of a beer palate, people who like classier, more sophisticated styles have started to do more food pairings and tastings," Slattery says.
These bottles cost $8 to $25.
GoodSpirits Fine Wine & Liquor also sells the large-format styles. At Monk's, Hauck says, some customers will buy a larger bottle, also called a bomber, to share. Usually customers want to sample more than one style, so they prefer drinking two small 12-ounce beers rather than one 22-ounce.
Craft beer production began in the 1970s in the U.S. It's a somewhat loose term that designates whether a brewery produces fewer than a certain number of a particular beer. It has taken 30 years for craft beer to take off, Hauck says.
In the past 10 years, craft beers have gained in popularity, building a large clientele with a younger audience, he says. "Domestic beers still have 95 percent of the business, which is huge. Craft beers are growing at about 12 percent to 15 percent a year. We have more breweries now than anytime since before Prohibition."
Sioux Falls has one craft beer producer, Granite City Food and Brewery, which carries up to eight beers, including two seasonal beers, on tap. Customers like that they can come to the restaurant and get a product that's not sold elsewhere, says manager Liz Paulsen.
Northern Light Lager and Two Pull, a mixture of Northern Light and Brother Benedict's Maibock, are the most popular choices, she says.
24 Jan. 2011