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.
Ukraine. Every Eighth Beer Bottle Consumed Is TM “Lvivske”
The brand "Lvivske" continues to gain popularity outside the "domestic" regions where the beer has been traditionally sold before its launch to the national market. In respect of the sales growth rate the South-East region was the best in 2010 and showed +92 % as compared to 2009. The brand is still leading in Western Ukraine. In this part of the country 38% of the "Lvivske" beer total sales in Ukraine are sold. The most popular sub-brand of the trade mark in 2010 is "Lvivske 1715".
The national promotional campaign "Brewer's Heritage" became one of the key marketing activities of the brand in 2010 (April-June). Based on its results the brand showed positive dynamic of sales. Professional community has also highly evaluated this campaign. It was awarded the bronze EFFIE Awards Ukraine 2010 in category "Alcoholic and Low-alcoholic Beverages". In 2010 TM "Lvivske" supported such great projects as the celebration of the Day of Lviv, the annual rock festival "Slavske Rock" and also initiated "Live Sculptures Tour" in the cities of Western Ukraine.
Moreover the brand managed to strengthen its positions thanks to the launch of new beer types - "Lvivske Zhyve (Live)" and the limited edition of the "Lvivske Juvileine (Anniversary Edition)" brewed for the 295th anniversary of Lvivska Brewery. Due to the effective distribution and logistics the beer fans all over Ukraine have an opportunity to enjoy new types and classic sub brands of the trade mark.
According to Carlsberg Group TM "Lvivske" took the 5th place in sales within the group at yearend. It yielded only to such internationally recognized trademarks as "Baltika", "Carlsberg", and "Tuborg". We'd like to remind that Carlsberg Group owns a portfolio of 500 beer brands which are sold in 50 countries around the world.
Yaroslav Koval, Vice-President for Marketing at "Slavutich", Carlsberg Group: "The "Lvivske" brand has demonstrated positive development dynamic by increasing its market share in 2010. We did our best and are grateful to the consumers that they evaluated our product on its merits. In 2011 we will continue to amuse the beer fans with new and interesting communications. Therefore, we hope that this year will be not least successful for TM "Lvivske".
10 Mar. 2011