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. Brew distribution laws hinder charity beer sales
Naming the ale for Plainfield’s Rotary Club Chapter 6450, Limestone donates 50 cents of every draw of the sweet malty ale to the local charity.
A number of Rotary Club members who own eateries would like to put 6450 Red Ale on their menus, helping the local brew pub and their charity.
But they can’t.
“The way the law stands right now, the only way to get beer out of here is in half-gallon growlers we fill at the taps,” said Ken McMullen, head brewer at Limestone Brewing Company, “unless we sign on with a distributor.”
That problem has pulled Limestone Brewing Company into a fight brewing over self-distribution rights for small beer crafters. Two bills set to come to vote in the Illinois Legislature this month could allow small brewers to sell specialty beers directly to retailers.
“Illinois brewers’ longstanding rights to self-distribute are under threat, which could slow down the tremendous growth of craft brewing and its related economic impact,” according to a statement on the Illinois Craft Brewers Guild website at www.illinoisbeer.com.
The boutique beer business is booming. While beer sales overall were down 2.7 percent last year, the craft beer niche grew by 12 percent in retail dollars. The retail value of craft breweries in 2009 was an estimated $6.98 billion, up from $6.32 billion in 2008. Craft brewers sign about 100,000 paychecks in the U.S., including serving staff in brewpubs, according to figures from the Brewers Association.
Small beer crafters such as Limestone Brewing Company see self-distribution as an important avenue of building business in a hot market, broadening consumer choice and creating local jobs.
Because of a court ruling, to sell their beers to retailers, small breweries will need a distributor. If no distributor is interested, the pub will be banned from marketing it themselves.
If Limestone were allowed to distribute its beer, “at this point, it would just be Ken McMullen loading up a few kegs in a truck and driving them downtown and unloading them,” McMullen said.
“But that could lead to something bigger,” he said. “It doesn’t make sense that we can’t do that.”
The pair of bills, Senate Bill 88 and House Bill 205, would allow brewers producing fewer than 60,000 barrels of beer a year to hold a distributor’s license. Brewpubs such as Limestone, now permitted to sell up to 50,000 gallons for off-site consumption, would also be allowed to self-distribute if the new bill becomes law.
The issues behind the brewers’ bills are tangled. The bills are the byproduct of a recent federal court ruling, Anheuser-Busch InBev v. Illinois Liquor Control Commission, which deemed a section of Illinois law unconstitutional because it did not treat in-state and out-of-state brewers the same.
That court decision came after a U.S. Supreme Court ruling in Granholm v. Heald affecting direct shipments of wineries.
But that case quashed the right of Illinois brewers to sell their beer directly to restaurants, bars and package goods outlets. But the ruling gave the Illinois General Assembly until March 31, when the decision takes effect, to amend the Liquor Control Act. The judge said the General Assembly could consider a gallon cap “to permit self-distribution by for small brewers, which many states do constitutionally.”
Distributors and large brewers have come out winners in the court rulings and aren’t likely to encourage the bills’ passage since it benefits small brewers.
“Distributors and other larger breweries have the advantage because, the way things stand, small and new breweries just don’t have the same opportunities to make their business grow,” McMullen said.
20 Mar. 2011