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.
Sam Calagione of Dogfish Head Craft Brewery updates book, “Brewing Up a Business” with off-centered business wisdom.
Sam Calagione, founder and owner of Dogfish Head Craft Brewery has been busy since his first book with Wiley in October 2006. With new, exotic beer creations, a show on the Discovery Channel, “Brew Masters” and the April launch of “Birreria”, a Mario Batali and Joe Bastianich brewpub on the rooftop of Eataly in New York City – Sam Calagione understands what it takes to succeed in business, the off-centered way.
With everything going on in the life of Sam Calagione, it’s time for an updated version of his latest book, Brewing Up a Business. Set to publish in February 2011, Calagione offers a deeper real-world look at entrepreneurship and what it takes to operate and grow a successful business in “Brewing Up a Business: Adventures in Beer from the Founder of Dogfish Head Craft Brewery, Revised and Updated, 2nd Edition” (Wiley; ISBN: 978-0-470-942314).
Starting with nothing more than a home brewing kit and a small Manhattan stove, Sam Calagione founded Dogfish Head Craft Brewery almost sixteen years ago. A fateful job waiting tables introduced him to micro brewed beers. After bankers dismissed his original business plan, he raised $220,000 from friends and family to open Dogfish Head Brewing & Eats, a 150-seat restaurant-brewpub in downtown Rehoboth Beach, Delaware.
How has Dogfish Head stood out amongst the Bud and Coors of the world? It’s easy; their original mission of “off-centered ales for off-centered people” still resonates as much today, if not more, than it did almost sixteen years ago when they opened in 1995. At that time - they were the smallest commercial brewery in the country, today they are one of the top 25 breweries in America, out of 1600 breweries.
The focus of Dogfish Head has been to make beers that veer away from referencing commercially dominant styles. Rather, they incorporate exotic ingredients from around the world to create off-centered ales. In 2010, Dogfish Head was able to share and explore their passion through national television on Discovery Channel’s “Brew Masters”. This has given the brewery an opportunity to not only spread the word about their brand but the craft brewing renaissance sweeping the globe.
Sam Calagione’s, BREWING UP A BUSINESS 2E offers several new chapters, offering Dogfish Head’s most innovative marketing ideas, including how social media has become an integral part of the business model and how other small businesses can use it to catch up with bigger competitors. Calagione presents a compelling argument for choosing to keep his business small and artisanal, despite the growing demand for his products. Also, new content expands on the art of differentiating products and services in a crowded marketplace.
A highly entertaining and an enlightening first-hand tale, BREWING UP A BUSINESS 2E depicts the life of the company’s rise from the smallest commercial brewery in the country to the fastest growing brewery in the United States. The book is as unique and offbeat as the brewery that inspired it. Instead of being inspired by the Jack Welchs and Peter Druckers of the world Sam writes of a business philosophy based on lessons from Andy Warhol, Ralph Waldo Emerson, Bob Dylan, Miles Davis and Walt Whitman.
Sam Calagione emphasizes their off-centered philosophy in the upcoming 2nd edition of BREWING UP A BUSINESS, “We are “off-centered,” meaning that we’re not going to appeal to the majority. That said, we’ve been able to carve out a very healthy niche, growing by catering to a very small but increasing and very engaged minority beer drinking population – those who want more flavor, more diversity, more complexity, more food compatibility in their beer. Those are the folks we’ve grown with; and, there’s a lot more of them today than there were when we were the smallest craft brewery in the country. “
Calgione’s innovative style has earned him a reputation as one of America's most adventuresome brewers and businessmen. He was named by The Small Business Association as Businessman of the Year for 2004 and has been recognized as the youngest person to be named to the Board of Directors for the Association of Brewers.
With real lessons on entrepreneurship, as well as practical ideas on nontraditional marketing, BREWING UP A BUSINESS 2E is a business story that will open readers’ eyes to the benefits of thinking outside the box. Using unconventional marketing and promotional techniques as well as a strong-willed determination to succeed, Sam and his team at Dogfish Head have defied the odds and built a successful business within an industry that is ruled by massive companies, strict government regulations and large advertising budgets.
About the Author:
Sam Calagione (Milton, DE) is the founder and owner of Dogfish Head Craft Brewery , the nation's fastest growing independent brewery, and Dogfish Head Brewings & Eats in Rehoboth Beach, DE. His innovative style has earned him a reputation as one of America's most adventurous entrepreneurs and brewers. He has been named Businessman of the Year by The Small Business Association and is the youngest person to be named to the Board of Directors for the Association of Brewers. Sam has been featured in publications as diverse as Wall Street Journal, BusinessWeek, Playboy, People, and Bon Appetit, and is the host of the new series Brew Masters on Discovery Channel.
26 Jan. 2011