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.
Kerry says brewers face major barley quality and supply challenge
USDA (United States Department of Agriculture) statistics estimate drawdowns on the on EU barley crop (of malting quality) to 10.05m tonnes in 2010, compared with 14.45m in 2009. The perfect storm?
Reasons for the output decline include heavy rain that hit production in Germany, Scandinavia and Eastern Europe, the Russian heatwave that hit production by 50% and led to a barley export ban, US production declines and a wet Canadian harvest.
But the bad news didn't end there, as Jolande de Ridder, Kerry Ingredients & Flavours EMEA marketing manager for beverages explained:
"Energy costs from malting have also risen compared to 2009, though still not quite at the highs of 2008, and malting capacity is not being fully utilised, especially in Europe. All of these factors have the overall effect of reducing supply volume."
Kevin Baker from beverage industry research specialists Canadean told FoodNavigator.com that barley shortages would clearly lead to increased costs for brewers, but said one way for them to cope was to reduce barley content as a percentage of the mass used in brewing, given that most firms don't use 100% barley in any case.
Enzymes to boost yields
Given the ‘perfect storm' hitting barley beer production, and worries about barley supply, cost and quality, Kerry is aiming to capitalise by offering manufacturers value-added products to increase output.
The ingredients giant has just completed in-house research on Canadian malted barley from 2010, which it said indicated a high beta-glucan content as against the 2009 yield: 0.54% dry as against 0.23% for 2009 malt.
High levels of beta-glucan (polysaccharides) can impair mash or beer filtration, causing a distinctive ‘beta-glucan haze', said Kerry, due to insufficient hydrolysis (decomposition of a chemical compound on contact with water) during mashing, which is important in high level barley adjunct brewing, where adjunct are unmalted grains that supplement main mash ingredients such as barley.
Last November, Kerry launched its Bioglucanase enzyme range to hydrolyse malt/barley beta-glucan, and the firm said trial using 150g/tonne decreased beta-glucan levels, lowered product viscosity and increased extraction rates.
For instance, specific variety Bioglucanase HAB is designed for ‘high level' barley adjunct brewing (where 90% barley is used in the mash) and Kerry said its new trials showed yield improvements of 1-2%, and reduced brewhouse costs by 0.4%.
7 Feb. 2011