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.
London 2012 signs Heineken as latest sponsor
As part of the deal, the company's flagship premium beer, Heineken will be the branded lager served at the Games and Heineken UK will have exclusive pouring rights for its portfolio of beer and cider brands at all London 2012 venues where alcohol is served.
As an Official Supplier of the London 2012 Olympic Games and Paralympic Games, Heineken will be able to utilise exclusive hospitality and marketing opportunities associated with the event. It will also enjoy sponsorship and venue supply rights associated with the British Olympic Association, Team GB, the British Paralympic Association and the Paralympics GB team.
London 2012 Commercial Director Chris Townsend said: "Like many major events, the provision of food and drink is a part of the overall experience and this year sees our plans in this regard move up a gear. We are especially pleased to be working with Heineken, as we have a shared goal of encouraging adult visitors to our venues where alcohol is served to celebrate responsibly. We welcome Heineken to the London 2012 family and look forward to working with them between now and the summer of 2012."
Alexis Nasard, Chief Commercial Officer, Heineken N.V. said: "There are no bigger, global or more spectacular events than the Olympic Games and Paralympic Games. We selected this opportunity as it fully reflects Heineken's global brand position. It also provides a wonderful platform for the promotion of responsible drinking. Based on the experiences gained from being a long-term sponsor of premier sporting events such as the UEFA Champions League and the Rugby World Cup we will utilise London 2012 to celebrate with the world in a way that only Heineken can do."
Stefan Orlowski, Managing Director, Heineken UK, said: "We are delighted to secure this sponsorship and supply agreement with the London 2012 Games. We look forward to working with LOCOG to capitalise on the exciting opportunities it offers for the Heineken brand and Heineken UK. It is a significant investment and undertaking for the company and one that can help build pride amongst all our colleagues, business partners and consumers across the UK".
3 Feb. 2011