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.
Australia. Competition a casualty in beer wars: Xenophon
Foster's, though, came in for flak of its own for its actions from a leading consumer group.
Advertisement: Story continues below "If the big supermarket chains can use their enormous market share to crush competitors, they will ultimately decrease competition and beer prices in the future will go up, not down," said the independent senator from South Australia.
Senator Xenophon drew comparisons to the so-called milk wars in which the two dominant supermarket chains, Coles and Woolworths, have slashed the cost of milk in order to win market share. The deep discounting, however, has led to charges that the dairy industry's viability is being threatened.
"Forget about Coles' claims about prices going down,” said Senator Xenophon. “What we are seeing is entire industries going down just so Coles can steal customers from Woolworths and the independent supermarket chains.”
Beer looks like becoming the latest front in a widening price war over items typically found on household shopping lists such as milk, bread and eggs.
In February Senator Xenophon announced an inquiry into the impact of retail milk price war on Australia's dairy farmers.
"The door remains open for a wider inquiry into a number of products after we resolve the milk inquiry," said a spokesman for Senator Xenophon.
For their part, Woolworths and Coles both denied they engaged in a price battle over cheap beer.
Choice consumer group spokesman Christopher Zinn said the decision by Foster's underscored the brewer's excessive market power, which undermined independent grocers' ability to compete in the retail beer market.
“It shouldn't be up to how much market power you have in terms of a supplier whether you let your product go through or not which determines whether a discount happens,” said Choice consumer group spokesman Christopher Zinn.
He said the brewers were selectively observing one part of trade law by restricting the sale of beer because it was being used in a loss-leading promotion.
Previous research by Choice showed independents were unable to purchase beer at the same price Coles and Woolworths secured from the brewers, said Mr Zinn.
“If brewers are so concerned about the potential of the supermarkets to damage to their brands, they should really sell their slabs of beer to independents on similar terms that they do the two big guys,” said Mr Zinn.
Choice's Mr Zinn and Mr Xenophon both called for action from the Australian Competition and Consumer Commission on the beer pricing.
"The ACCC seems to work incredibly hard finding new ways to tell Australian consumers why they can't do anything," said Mr Xenophon.
The ACCC, meanwhile, declined to comment.
Australian Hotels Association of New South Wales is also understood to be unhappy with the behaviour of the grocery chains. They say a flood of cheap beer can raise the incidence of alcohol abuse - which is typically blamed on the hotels industry.
“It’s quite surprising that in this on-going debate around alcohol-related violence in the community that the proliferation of massive bulk discount liquor barns goes unquestioned," said AHA NSW chief Sally Fielke.
“How can we genuinely tailor solutions to anti-social behaviour whilst ignoring these liquor barns selling beer cheaper than water? It’s irresponsible,” she said.
At the same time, though, consumption of beer at home tends to sap revenue for pubs.
23 Mar. 2011