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.
Canada. Beer industry exempt from new food-allergen labelling rules
Aglukkaq, at a grocery store to make the announcement, focused on how the new rules will make it easier for people with food allergies or celiac disease to identify ingredients and alert parents if a food or beverage contains "hidden" allergens, gluten sources and sulphites.
"All parents want to have confidence in the food they are serving their families, and these changes to food labels will make it easier for parents of children with food allergies to identify potentially harmful, if not fatal, ingredients in foods," Aglukkaq said.
Aglukkaq also confirmed beer companies won a last-minute reprieve and will be exempted from labelling regulations, to come into effect in August 2012 to give food and beverage manufacturers time to change their labels.
She defended the move, saying brewers raised concerns about the government's initial proposal, so she is "working through that" with new consultations. Aglukkaq declined to provide a time frame, but said she wasn't prepared to postpone the whole labelling imitative in the meantime.
"I was not prepared to delay this another day. Today's announcement is an exciting one — it changes food labelling so families and children will be able to trust the label that they read on the products that they buy everyday."
Aglukkaq added: "I think if your children are drinking beer, you've got other issues to worry about. This is about children, this is about allergies."
After working on the plan with industry representatives and allergy groups for more than a decade, Health Canada announced the labelling proposal in 2008, requiring food allergen or gluten sources to be written in a uniform way using commonly used words.
For example, the grains spelt and kamut would have to be declared as wheat. And if prepackaged food contains the ingredient "spices," the food would be required to list any allergen, gluten sources or sulphites present in the spices.
Under the initial proposal, alcoholic beverages would still have retained their exemption from complete ingredient listing, but would have required to declare any food allergens, gluten sources or added sulphites on labels for beer, wine and spirits. This was aimed at people with celiac disease, which is characterized by an intolerance to gluten, a protein found in grains such as wheat, oats and barley.
After formal consultations with industry and health groups wrapped up, the final regulations — with no exemptions for beer, wine and spirits — were set to be published earlier this month with the full support of the food industry.
But a last-minute lobby campaign by the beer industry scuttled the announcement, and the Prime Minister's Office became actively involved when the Brewers Association of Canada complained the proposed regulations would require them to state the obvious — that beer contains barley or wheat, so people with an intolerance to gluten already know they need to avoid beer.
The industry group also complained about the cost to change labels. For some small breweries, the cost would be very high as they print directly on re-usable glass bottles rather than paper labels.
Wine and spirits will still be subject to the new label regulations.
For example, if a food allergen is present in wine and spirits, as a result of the use of fining agents from eggs, fish or milk, the allergen source must be shown on the label of the prepackaged product.
Chris George and his family drove from St. Catharines, Ont., to Ottawa to laud the announcement, saying the labelling changes will mean "shopping is that much safer" for their family. George's seven-year old son, David, is allergic to nuts and legumes, so it's "absolutely necessary" that food labels are accurate and written in plain language, he said.
"We depend on our food producers, we depend on our food packagers to provide accurate labelling, so we know what the content is. We need to be 100 per cent sure. That is the reason why this announcement is good news for our family," said George.
But Laurie Harada, executive director of Anaphylaxis Canada and mother of a son with multiple food allergies, was more tempered. Her group is "very pleased" with new regulations for food labels, but "very disappointed" in the special beer exemption, given there can be up to 40 ingredients in beer and the move goes against the advice of Health Canada's own departmental advisers following lengthy consultations.
"I think the process with Health Canada was pretty transparent up until a few weeks ago, and unfortunately it became very political," said Harada, who said she's concerned about the lack of details and timeline for the new beer labelling consultations.
"That to me is a red flag."
2 Mar. 2011