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.
SABMiller: The number of pub restaurants with tanks has increased 60-fold in the last 15 years
"Probably nowhere in Europe nor anywhere in the world does the tank system have such widespread usage or such an elaborate network as it does in the Czech Republic, where beer's role as the national drink plays into the cards of restaurants with tanks. The reasons for the phenomenon are the unique local beer culture and the fact that in the Czech Republic it is customary to have at least one or more brands of beer on tap," says Daniel Jane?ek, manager of technical services at Plze?sk? Prazdroj.
The advantage of the tanks is that the beer will be stored under the best conditions, with a constant temperature set between 7-10 degrees Celsius. The beer is stored in a watertight polypropylene bag (bag-in-box system), and during storage and service it does not come in contact with air or the wall of the tank. This way it does not oxidize, keeping its optimal and natural amount of CO2, which is produced during the fermentation of the beer and adds the right amount of vigor. Tanks are installed in pub restaurants with a high consumption of beer, which, together with technological advantages, guarantees that the beer in the tank is as fresh as it can be.
Beer from tanks has many advantages, mainly for the managers of establishments - they don't need as much room to store barrels, and they don't have to run to the cellar often to open another barrel. Chilling beer in a tank saves energy, and delivering beer in a tanker is easier. "A tank has all these advantages only for pubs with a relatively high volume of consumption, which means that they have a lot of regular customers. For other pubs, it is more advantageous to use classic beer barrels, which are familiar to most Czech beer consumers. If beer is well stored and taken care of, then there is no difference between beer from a barrel and beer from a tank, "adds Daniel Jane?ek.What does a "tank facility" look like?
A typical pub restaurant with tanks has three to four rustproof tanks in a cool box. Tanks that are placed behind a glass wall are often a nice addition to the interior. Very popular pubs that use tanks can serve more than 100 hectoliters of beer a month. The largest number of tank facilities with such a high volume is in Prague, and the record setter is Restaurant And?l, whose tanks serve more than 2500 hectoliters of Pilsner Urquell a year.
Since 1996, tank facilities have served more than 3.8 million hectoliters of Pilsner Urquell, Gambrinus, Velkopopovick? Kozel and Radegast beer. The most popular brand is Gambrinus, which is served in 342 tank facilities. Pilsner Urquell is the only Czech beer that sends its beer in tankers beyond the country's borders to one facility in Vienna and to nine restaurants with tanks in Slovakia.
Interesting historical information
The first two modern tanks could already be seen in Czech pub restaurants in 1994, but one can say that only starting in 1996 can we talk about the real implementation of tank technology, the "bag-in-box" system, in Czech pubs and restaurants. Pioneers of tank technology were breweries owned by Plze?sk? Prazdroj. Historically, the first Czech tank facility with the new type of tank system was found in U Korbele, a pub restaurant in Plze?, that served Gambrinus on tap.
At the beginning, difficulties in the implementation of new tank facilities included owners who had a rather conservative approach to the technology. For example, Karel Hulata, owner of U Zlat?ho Tygra, the legendary pub restaurant in Prague, toured other pubs that already had tanks installed to find out for himself that the new system of storage and service would not influence the renowned quality of his beer. Eventually, restaurant and pub owners realized the advantages of new beer tanks, and interest in the installation of the system grew.
- With total sales of 10.5 million hectoliters in 2009 (including licensed production abroad) and with export to more than 50 countries, Plze?sk? Prazdroj is the biggest producer of beer in the region and the biggest exporter of Czech beer.
- Plze?sk? Prazdroj, a. s.,is a member of the SABMiller PLC, and Pilsner Urquell is an international flagship of SABMiller brands.
- SABMiller PLC is one of biggest beer companies in the world, with activities and distribution in more than 60 countries on six continents.
7 Feb. 2011