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.
UK. Miller Brands extend availability of Kozel following successful launch
Since its launch at the end of September, the beer, which is available only in draught format in the on-trade, has been successfully flowing in a number of Mitchells & Butlers' brands including Browns and a number of pubs within its Metro Professionals collection of pubs.
Darren Tendler, Sales Director of Miller Brands said: "We're delighted with the way that Kozel has performed so far in the UK, demonstrating that there is a clear opportunity in the market for a beer which has all the great taste you'd expect from Czech beer, but with a lower 4% abv."
"Kozel's authentic ‘Czech village' proposition and quirky brand personality has been embraced by both consumers and the trade alike, and so we are now extending the availability of Kozel within the on-trade."
"We introduced Kozel to our customers shortly after the Railway Tavern had been refurbished," said Cath Hobbis, Assistant Manager of the Railway Tavern, a Mitchells & Butlers' pub in Clapham. "This gave us a real point of difference from other pubs in the area - people were asking about the beer and wanted to know more about its taste and heritage. Now, they love the beer and regularly ask for it."
"Everything from the point of sale to the glassware has been fantastic and really works well with our customer base. The marketing material is really quirky and the promotions have captured our customers' imaginations."
Kozel, which has been brewed in the small Czech village of Velke Popovice since 1874, will be offering trade support to all new stockists through staff training, supply of premium glassware, point of sale material and visibility items including stand alone fonts and t-bars. All of the communication will convey Kozel's distinctive brand personality personified by its quirky goat mascot.
The Czech lager will also be providing in-outlet consumer promotions to stockists every six months with prizes that include a summer road trip to the village of Velke Popovice. In addition to consumer activation, Kozel will also be rewarding excellence in outlets with staff given the opportunity to win various prizes.
The original, then state-of-the-art, brewery was founded by the Prague industrialist Frantisek Ringhoffer. He and the first Kozel brewmaster produced their first batch of smooth Kozel in December 1874. Frantisek selected the village for the outstanding properties the water brought to the brewing process. Since just after World War I, the beer has prided itself in its official trademark and has grown to rank among the largest and most popular beers in Bohemia. Velkopopovick? Kozel has remained one of the best and most popular Czech beer brands through the‘30s and ‘40s - and even after the company was nationalised in 1945. In the early ‘90s, the brewery became a private company once more. Since 1999, it has been part of Plze?sky Prazdroj, a.s., which itself is owned by SABMiller.
About Miller Brands
Miller Brands is the UK and Ireland subsidiary of SABMiller, one of the world's largest brewers. Miller Brands is responsible for the development of SABMiller's international premium brands across the UK and Ireland; these include Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft. Through its consistent pricing and distribution discipline, supplemented by engaging marketing activities, Miller Brands is bringing value back into the beer category. Sales are currently growing in excess of 20% year after year in a declining market and this is increasingly recognised and referenced by retailers. More information can be found at www.millerbrands.co.uk.
SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the largest bottlers of Coca-Cola products in the world.
In the year ending 31 March 2010, the group reported US$2,929 million in adjusted pre-tax profit and group revenue of US$18,020 million. SABMiller is listed on the London and Johannesburg stock exchanges.
About Mitchells & Butlers
Mitchells & Butlers is the leading operator of restaurants and pub s in the UK. Its leading portfolio brands includes Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pub Co., Browns, Miller & Carter, Metro Professionals, All Bar One, Nicholson's, Metro Professionals, O'Neill's and Ember Inns. Further details are available at www.mbplc.com and supporting images at www.mbplc.com/imagelibrary
1 Feb. 2011