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.
US: Craft brew fad takes off
One of those kegs from the Newport, Ore., brewery can be found at Pocatello's Flipside Lounge, 117 S. Main St.
Local beer enthusiasts can thank Patrick Bailey for providing that option, as well as a host of new craft beers he's delivered to the market as a sales representative with Hayden Beverage Co. Though Bailey acknowledges Pocatello beer drinkers still like their Miller and Bud Light, he notes by no means has the craft brew craze that's swept the nation missed Southeast Idaho. He also predicts a familiar Pilsner that his beverage company distributes, Pabst Blue Ribbon, will give the Big Three - Bud, Miller and Coors - a run for their money locally.
Hayden has distributed wine in the Pocatello area for the past three years, but the company entered the beer scene six months ago, when Intermountain Beverages sold to TEC Distributing based in Twin Falls. Some of Intermountain's breweries, switched to Hayden. Hayden - a Boise company that operates a Chubbuck warehouse - now carries labels including Deschutes, Sierra Nevada, Rogue, Ace, Manny's, Mac & Jack's and PBR.
Delaware-based Dogfish Head Brewing Company, featured on the new Discovery Channel program "Brew Masters," has committed to sign with Hayden when the company arrives in Idaho.
"The craft market has just exploded," Bailey said. "Our company is helping this market to be on the front lines of the cutting-edge beers."
Bailey, 27, started as an entry-level worker with Hayden, stocking shelves in the Boise area with their products. He worked his way up the corporate chain to be a delivery driver and ultimately to assume the challenge of helping Hayden expand into Pocatello.
Bailey notes the craft brew fad has strong roots in the Pacific Northwest. That's why he's especially encouraged by another trend originating from that region.
"Pabst Blue Ribbon is the No. 1 beer in Portland and Seattle right now," Bailey said. "Everything that starts in the Northwest comes this way."
He said PBR has already started to catch on locally, and in his mind its quality is a cut above the competition.
"It's all barley beer. It's not a rice or corn mix," Bailey said.
Phil Spain of Intermountain Beverages won't disagree that the future is bright for PBR in Southeast Idaho.
"The Pabst was growing at 50 percent while we had it. Ever since, it grows leaps and bounds," said Spain, whose company distributes Miller and Coors products. "It's kind of a niche beer. A lot of the younger kids are drinking it. It's pretty easy to say PBR."
But Spain is also quick to note that sales of his Coors Light have been up this year, and Miller is still a strong performer. Spain believes the greatest momentum in the industry, however, lies within the craft brew sector.
"Craft beer sales are up. I don't think they're drinking as much, but when they're buying, they're buying a craft beer," Spain said. "It's amazing those are still growing. You're talking about a $7.99 six pack. I think when people spend a dollar bill, they want the best they can get for that dollar."
Spain notes Intermountain is also doing its part to improve the selection of craft brews in the Pocatello market.
Spain said the company recently signed a contract to carry beers from the Idaho Brewing Company in Idaho Falls, which should be in Pocatello restaurants and taverns soon.
"We just got our first shipment in," Spain said. "As soon as (the brewer) increases production, he's going to move on to Twin Falls and some other parts of the state."
26 Jan. 2011