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.
Heineken Submits Highest Bids for Ethiopian State-Owned Brewing Companies
Heineken offered $85.2 million for Bedele Brewery SC, Wondafrash Assefa, spokesman for the Private and Public Enterprises Supervising Agency, said in an interview today in Addis Ababa, the Ethiopian capital. The Amsterdam-based company is also prepared to pay $78.2 million for Harar Brewery SC and there are no competing bids, he said.
“Our bids were the highest and we look forward to engaging formally with the Ethiopian government once it has completed its review of the detailed bid documentation,” Heineken spokesman John-Paul Schuirink said in an e-mailed statement. The company was told that process may take “up to 120 days,” he said.
Ethiopia is selling state-owned companies to private investors as it seeks to diversify its economy. The Horn of Africa nation, the continent’s biggest coffee producer, relies on agriculture to generate 43 percent of its economic output, according to the CIA World Factbook.
The government plans to sell 50 companies by mid-2015, including agricultural, food and printing businesses, according to Wondafrash.
Most of Ethiopia’s private businesses were nationalized in the 1980s under the former Communist Derg regime. That government was toppled by the current ruling Ethiopian People’s Revolutionary Democratic Front, a party with Marxist roots that has shifted toward a market-based economy since it came to power in 1991.
“The private sector is more efficient than the public sector,” Wondafrash said.
Bedele, situated in western Ethiopia, has the capacity to produce 300,000 330-milliliter (0.7-pint) bottles of beer per day, according to the agency’s website. Harar Brewery can produce 200,000 hectoliters (5.28 million gallons) of the beverage annually, it said.
Among other bidders for Bedele were SouthWest Development Plc of Ethiopia, which bid $70 million; Carlsberg A/S, the Copenhagen-based beer maker, which offered $68 million; and BGI Ethiopia, a unit of French brewer and vintner Groupe Castel, which bid $64 million, Wondafrash said.
“It’s good to see the big companies interested,” he said. “And it’s also good for them, as these breweries have a lot of resources.”
BGI Ethiopia, Ethiopia’s biggest brewer by sales, accounted for about half of the 300 million liters of beer sold in the 12 months to July 7, 2009, in Africa’s second-most populous nation, Access Capital, an Addis Ababa-based research group, said in May. Beer consumption is expected to grow by about 15 percent every year for five years, it said.
“With its large, growing population, political stability, improving economy and rapidly growing beer market, Ethiopia is a promising, long-term growth market for Heineken in Africa,” Schuirink said.
29 Mar. 2011