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.
Uganda. Brand-building driving competition in beer sector
Uganda Breweries Limited, an affiliate of the East African Breweries yesterday launched a new look of its Bell Lager brand in a long neck bottle, a move it says reinforces the premium quality that the brand has been associated with.
Speaking to journalists, Ms Marion Adengo Muyobo, EABL head of marketing said UBL found it inevitable to refurbish the packaging to match the ever changing consumer preferences, lifestyles and trends.
Last year, EABL launched a similar long neck bottle for its Pilsner Lager brand.
Nile Breweries was the first brewer to repackage its brands in the long-neck bottle.
Nile Breweries, a subsidiary of South African Breweries (SABMiller) dragged UBL to court in 2009 for allegedly using the long neck bottle, which it claimed to have legally protected by registering it as its trade mark.
The Court issued a temporary injunction, restraining UBL from selling its products in the bottle on December 17.
However, when UBL on December 22, applied for the interim order to be set aside, the High Court lifted the injunction on December 22.
Nile Breweries (NBL), according to a survey by Kestrel Capital, a Kenyan investment bank which polled beer consumers in the East African region in May 2010, dominates the Ugandan market with a 55 per cent market share with UBL coming second.
EABL, however, is the market leader in Kenya with over 70 per cent market share.
EABL also acquired a 51 per cent stake in Tanzania’s largest brewing company - Serengeti Breweries in October last year at an approximated cost of $60.4 million, a move that is expected to boost its competitive edge in the East African region.
Uganda’s alcohol consumption per capita is 6 litres, meaning that the market has momentum for volume growth in beer.
Ms Mayobo, however, identified poor road infrastructure and higher operating costs due to rising fuel and raw material prices as challenges facing the industry.
11 Feb. 2011