The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
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.
The American craft beer scene goes global
While craft beer fans hedge their bets on whether Sunday's Super Bowl play-by-play is more suited to hopped-up IPAs or intensely flavored stouts, Greg Koch will be deliberating over a lot more than what to sip on game day. In the coming weeks, the co-owner of Escondido-based Stone Brewing Co. will finalize the location of the first American craft brewery on the European continent.
After decades of taking hops advice from foreign brewers, American craft brewers are beginning to return the favor. Several are now exporting their beers, and others are inviting upstart foreign brewers stateside for a lesson in brewing American favorites such as double IPAs (an India pale ale amped up with extra hops to intensify the flavor). Or, as with Stone, they are getting a surprisingly bubbly reception in the bid for permanent resident status abroad.
"We had no idea we would suddenly need a Stone employee with 'European acquisitions' added to his title," says Koch. After scouting locations in May, Koch and co-owner Steve Wagner received more than 75 brewery site proposals from nine countries, including Denmark, Estonia, France, Italy and Britain. They recently narrowed the playing field to the top two contenders: Bruges, Belgium, and Berlin.
While Stone and other craft brewers have their eyes on the international consumer, their experimental, boldly flavored American beers also have been influencing a new generation of cutting-edge overseas brewers.
"When American craft beer got its start, we were imitating styles from the great brewing nations like Belgium, Germany and the U.K.," says Bob Pease, chief operating officer of the Brewers Assn., the Boulder, Colo.-based nonprofit craft brewers' trade organization. "Now 20 to 25 years later, we've come full circle, and they're looking to us for inspiration, but we're really just getting started overseas."
Like their American colleagues, Scotland's BrewDog and N?gne ? of Norway make no apologies for their distinctly "American style" double IPAs and coffee-infused stouts.
James Watt, the 27-year-old co-owner of BrewDog in Fraserburghhttp://www.brewdog.com/contact, Scotland, credits the absence of longstanding brewing traditions in the United States with encouraging a more creative brewing scene. "Beers in the U.K. have become fairly stuffy and old-fashioned, almost as if brewing traditions here have constrained brewers," he says. "When it comes to beer, we are light-years behind the U.S., and California in particular."
Before opening BrewDog in 2007, Watt and co-owner Martin Dickie visited several Southern California breweries, including Stone Brewing Co. and AleSmith, a San Diego brewery known for its unusual twists on Belgian- and British-style beers. "We really wanted to make beers like the American brewers who completely follow their muse," says Watt. BrewDog's Paradox, a high-alcohol stout aged in whiskey barrels, is noticeably similar to AleSmith's 12% alcohol-by-volume (ABV), bourbon-barrel-aged Speedway Stout; its Punk IPA is described on the brewery's website as a transatlantic fusion made with Chinook hops, an American variety of the herb often used in domestic IPAs.
BrewDog is not alone in its American influence. Hildegard van Ostaden's Urthel Hop It, a 9.5% alcohol IPA, came to fruition after the Belgium brewer tasted American-style IPAs at the 2006 Great Alaska Beer and Barley Wine Festival (it is now the brewery's most popular beer). N?gne ?, the first craft brewery to introduce IPAs to Norway, was co-founded in Grimstad by a former commercial pilot, Kjetil Jikiun, who purchased home brewing supplies on flight layovers in the U.S. (Stone Brewing Co. has since collaborated with N?gne ? on a holiday ale made with California sage and Norwegian juniper berries.)
Although these multicultural brews have increased the demand for American craft beers overseas, getting those IPAs to the customers tasting as good as they did when they left the brewery has not been easy.
"The biggest problem is that fresh, big hoppy flavor we're known for can fade quickly if the beer isn't stored properly or it sits too long in the distribution chain," says Koch. In 2010, Stone reserved most of its 115,000 barrels for stateside sales, shipping very limited quantities to Britain, Sweden, Japan and Singapore.
Pease says the limited shelf life of most craft beers is the primary overseas shipping hurdle. "Most craft beers are not pasteurized like commercial beers, which makes them basically the same as an unpasteurized food product and causes all sorts of export problems. But there are some styles of craft beers that fare better because they contain natural preservatives."
One of those natural preservatives is hops, the bitter herb that enabled the Dutch brewers to ship beer to Britain as early as the 15th century (many of the earliest beers made without hops had a shelf life of less than a week). Pease says craft beers that are heavy on hops and have a high alcohol content, which also acts as a preservative, fare best when being shipped long distances.
Still, navigating the logistics of shipping to multiple countries can be difficult. "It took us two years just to figure out how things work in Italy because the system is somewhat archaic," says Eric Wallace, the 49-year-old co-founder of Left Hand Brewing in Longmont, Colo. The former Air Force communications officer lived in Italy and Germany during the 1980s and opened Left Hand Brewing shortly after returning home to Colorado in 1993.
In 2004, the Brewers Assn. launched its Export Development Program with a grant from the U.S. Department of Agriculture to help American craft breweries meet the increasing demand for their products in international markets. According to the Brewers Assn., since 2003 total U.S. craft beer exports have tripled to more than 1.3 million gallons. (Sweden is the largest importer of American craft beer, followed by Canada, Japan and Denmark.)
Most of those sales are limited to large craft breweries such as Stone, but some small breweries are beginning to test the international waters. The Bruery in Orange County recently began shipping about 100 cases of its spice-infused ales to Europe every quarter as part of a shared shipping arrangement with Green Flash Brewing in San Diego and the Lost Abbey in San Marcos. "Volume-wise, exports really can't happen in large quantities for us, as we just don't make enough beer," says Bruery owner Patrick Rue, who hopes to increase exports in the future as his company expands production.
For large craft breweries, the demand for American beer abroad creates a more pressing problem than shipping headaches. Koch says rising illegal beer trafficking is one reason why Stone decided to build a brewery abroad. "I've seen our beers in Australia, and we don't sell there," he says of the growing underground ring of illegal exports. Koch says black-market beers are often procured from illicit distributors or by individuals who buy a retail store's entire inventory. He hopes to curb illegal sales by making Stone beers more widely available abroad once the brewery is built.
"I have no idea how that Australian beer had been stored or how old it was, but I imagine it didn't get there in a refrigerated truck like we require," Koch says. "Once someone tastes a bad version of our beer, they'll never taste it again."
Wallace believes making sure that those first American beer impressions are good also depends on the quality of foreign brewery start-ups making American styles. "I'm really trying to help new brewers [in Italy] crack their own market and create something for themselves … with beers more focused on flavor," he says. In recent years, Wallace has hosted Italian start-up brewers at his Colorado brewery who want to learn about American brewing practices. "It benefits us all if that craft beer specialty market emerges."
At BrewDog, Watt and Dickie are focusing their efforts on customer education. They recently opened a pub in Aberdeen featuring their brews alongside a small rotating selection of beers from their American friends, including AleSmith, the Bruery and Stone. "We're just at the start of this craft beer movement in the U.K., so we really feel that part of our job is to educate people here about the different kinds of good beers out there, just like American craft brewers did 20 years ago," says Watt.
With the Brewers Assn.'s Export Development Program focused on helping brewers navigate foreign markets, exports to pubs like BrewDog's will likely continue to grow. But for Koch, the decision to build his own foreign brewery rather than increase exports ultimately came down to a very red-white-and-blue business model.
"We like doing things ourselves," he says.
3 Feb. 2011