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.
US. Beer and politics
Anheuser-Busch, with a 51 percent share of the U.S. beer market, has been a model citizen in terms of being environmentally progressive. It recycled more than 27 billion cans in 2006, which is greater than the quantity used for all of its domestic packaging. That being said, Anheuser-Busch employs a substantial political action committee. According to OpenSecrets.org, it handed out $710,000 to candidates in the 2010 midterm elections.
MillerCoors LLC seems to have a longer laundry-list of questionable goings on than Anheuser-Busch, despite having a less wealthy PAC ($106,500 spent on the 2010 midterm election). The Coors family has always been a heavy proponent of right-wing politics. One member, Joe Coors, gave a $250,000 grant in 1973 to found The Heritage Foundation, a conservative public policy research institute. Chairman Pete Coors went so far as to, unsuccessfully, run for a seat in the U.S. Senate as a republican candidate in 2004. The Coors Company was also the defendant in a 1975 lawsuit brought by the Equal Employment Opportunity Commission. The lawsuit resulted in a settlement forcing Coors to agree not to discriminate against black, Hispanic and female employees.
Merging in 2007, Coors joined forces with SABMiller in an effort to keep up with Anheuser-Busch's growing prowess in the U.S. beer market. Recently, the Miller Brewing Company signed a contract to brew college beer favorite, Pabst Blue Ribbon. It might come as a surprise to more typically liberal college PBR drinkers that their favorite barley beverage is putting money in the pockets of the people behind The Heritage Foundation.
If your aim in drinking is to enjoy the beer and the effects it has on your body without needing to consider political connections, perhaps it would be better to stay away from big-beer corporations. In North Carolina, new breweries are popping up around the state year after year with colorful brand names ranging from "Big Boss" to "Full Steam." These companies focus on the quality of their product over the quantity of the distribution, making the beer they produce much more flavorful and generally enjoyable to drink. This will cause you to drop an extra dollar or two on a six pack, but the added enjoyment in the actual drinking of the beer combined with the general lack of back-door dealings more than makes up for the added cost.
8 Feb. 2011