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.
UK. BrewDog announces record sales as drinkers shun large breweries
The company, known for its quirky marketing and often unusual craft beer, said UK sales had surged by 230% last year and said its products were now available in Tesco, Sainsbury’s, Asda, Morrison’s and Waitrose.
This is in the face of a market that was 3.9% down during 2010, according to the British Beer & Pub Association, as pubs closed during the recession.
The producer of Punk IPA, the flagship brand which accounts for just over 50% of sales, saw total sales rocket to ?3.9 million, or the equivalent of more than 7m bottles.
James Watt, the 27-year-old co-founder of BrewDog, also said pre-tax profits last year had come in at ?300,000 – well ahead of its ?147 pre-tax profit of 2009.
The company, which exports 55% of its produce, yesterday predicted its UK market share would continue to rise.
It also insisted that the growing taste for speciality beers was more than just a temporary trend, and was here to stay.
Mr Watt said mainstream breweries were now “running scared” of the craft revolution. He also said the company, which employs a staff of 50, would open new BrewDog pubs in Glasgow, Edinburgh, Manchester and London this year.
The company opened its first pub in Aberdeen in September.
Mr Watt also said its new ?5m brewery at Dyce, on the outskirts of Aberdeen, would be “up and running” in 2012 and would add significantly to production volumes.
The Fraserburgh facility will remain open for the production of “experimental beers”.
Mr Watt said he regarded his growing sales as a “landmark victory for BrewDog” against the big mainstream brewers.
He also said the rising popularity of speciality beers was evidence of a public swing. “The market has shifted,” Mr Watt said.
“Consumers have become less interested in beers from faceless, multi-national corporations.
“They want interesting beers, made by people with passion.
“Molson Coors buying Sharp’s Brewery is an act of panic, not commercial nous.
“Buying a small brewery does not buy you a craft beer soul.
“All this does is prove they can see the change is coming and recognition that the market is shifting.
“It won’t help them be a part of it.
“They, along with every other mainstream brewery, are shaking in their boots.”
16 Feb. 2011