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. Stores Ramp Up Private-Label Beer Offerings
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