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4-2017

Global hop market

A 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 Russia

Germany 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.

US. Stores Ramp Up Private-Label Beer Offerings

Supervalu, Walgreens and 7-Eleven are among the contenders who are pushing their own brew brands.
Convenience, grocery and drug store chains are taking on Big Beer with their own lines of private-label brewskies, the Wall Street Journal reports.
Recently, Walgreens began stocking its Big Flats 1901, and in December, Supervalue rolled out its own house brand called Buck Range Light. Costco Wholesale Corp. and 7-Eleven also have launched private-label beers.
Retailers are hoping their lower-priced private-label beers will capture some of the beer market, which has been hard hit because of high unemployment. Store-brand products have risen in recent years, with revenue from that segment jumping 2 percent in 2010, according to Nielsen Co.
In-house beer brands have not faired as well as other private-label products partly because beer is seen as a social beverage and brand names contribute to the social image. Store-brand alcohol drinks comprise under 1 percent of alcohol sales in retail locations that Nielsen tracked in 2010. U.S. beer sales annually generate around $96 billion, according to the Beverage Information Group.
“Based on the economy, we saw an opportunity to offer our customers a high-quality, low-priced beer in a can,” said Michael Siemienas, a Supervalu spokesman.
Walgreens launched its Big Flats 1901 because customers want value “now more than ever,” said Bryan Pugh, vice president of merchandising.
The Winery Exchange Inc crafted both Walgreens, 7-Eleven and Supervalu beers. The increased prices of beers from MillerCoors and Anheuser-Busch InBev NV “have created opportunities” for bargain beers, said Oliver Colvin, senior vice president of operations for Winery Exchange.
7-Eleven’s Game Day Light and Game Day Ice have not sold well in some stores, according to Colvin. “Admittedly, Game Day has had some challenges, particularly in the 12-pack,” he said, adding that a single, 24-ounce can has done well. 7-Eleven countered that “Game Day Light has been a hit with consumers.”
Industry experts caution that building a clientele with new beers can be tough. “I think it's a hard sell, mainly because nobody has succeeded on the low-end with private-label beer,” said Harry Schuhmacher, who publishes Beer Business Daily.
9 Feb. 2011

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