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 announces three new projects focused on prevention and treatment of HIV/AIDS in Africa
•PharmAccess African Studies to Evaluate Resistance (PASER), Nigeria – PASER is managed by the PharmAccess Foundation and is the largest coordinated effort in sub-Saharan Africa to monitor HIV drug resistance. Six African countries hosting 15 clinics, laboratories and research institutions are joined in a unique collaborative network to collect data on (emerging) HIV drug resistance. Currently, over 3,000 adults who receive antiretroviral treatment are being monitored. With Heineken’s funding Nigeria will now be added to this study, supporting the implementation of a monitoring program to assess the emergence of HIV drug resistance in both Nigerian adults and children who are receiving Highly Active Antiretroviral Therapy.
•Bonnes Routes!, Democratic Republic of Congo – This programme will support two existing road wellness clinics in Lukala and Bukavu in Northern DRC. The clinics will provide curative and preventative health services to more than 25,000 employees of transportation companies and other community members each year. They will provide HIV prevention guidance and ultimately HIV treatment, as well as basic health care services. If successful, an expansion of the programme’s scope will be considered.
•Project King’s Hope, South Africa – This is an ongoing project run by the King’s Hope Development Foundation. With the HAF funding, the foundation will be able to improve the accessibility of healthcare to HIV patients in the area of Olievenhoutbosch in the Gauteng Province, specifically palliative care.
Jean-Fran?ois van Boxmeer commented: “These three new HIV/AIDS projects supported by the Heineken Africa Foundation will play a small but meaningful role in helping to continue the fight against the disease in Sub-Saharan Africa. They will help address the ongoing challenge of HIV/AIDS by increasing knowledge, extending preventive support and providing treatment to those who are suffering.”
Under the theme "Sharing Responsibilities in the 'World of Work' in Africa," the Heineken HIV/AIDS symposium brought together leading figures from national government, NGOs, the public health community and industry to take stock, challenge conventional thinking and stimulate new ideas. The symposium reflected on three key issues: access to medication, resistance to treatment and the gap in funding.
Heineken was particularly honored by the participation in the symposium of Mr. Ben Knapen, the Netherlands Minister for European Affairs and International Co-operation. In his keynote speech “A Government Perspective,” Mr. Knapen stressed the importance of initiatives such as the Heineken Africa Foundation:
“My government believes that public-private partnerships are an important tool in the fight against HIV/AIDS. Bringing together partners from both the public and private sectors creates the synergy and leverage we need in order to step up our efforts.”
Other expert speakers participating in the symposium were:
•Dr. Hedia Belhadj, Director, Partnerships Department, UNAIDS;
•Prof. Dr. Joep M.A. Lange, Department of Global Health, Academic Medical Centre, University of Amsterdam, Amsterdam Institute for Global Health and Development;
•Ms. Morolake Odetoyinbo, Board Member, The Global Fund; CEO, Positive Action for Treatment Access;
•Mr. Hugo Tempelman MD, MA, CEO Ndlovu Care Group, South Africa; visiting professor Utrecht University;
•Dr. Marijke Wijnroks, AIDS Ambassador, The Dutch Government.
In addition to Chairman/CEO Jean-Fran?ois van Boxmeer, other Heineken employees presenting at the symposium were Tom de Man, Regional President Africa & Middle East, Hans van Mameren, General Manager Bralima, Democratic Republic of Congo, and Dr. Stefaan Van der Borght, Director Global Health Affairs.
On March 30, Dr. Van der Borght successfully defended his doctoral thesis “Making HIV programmes work. The Heineken workplace programme to prevent and treat HIV infection 2001 - 2010” at the University of Amsterdam.
Click here to replay the HIV/AIDS symposium’s webcast, and for additional information on the Heineken Africa Foundation.
The HIV/AIDS symposium is part of the “Heineken Cares” initiative, under the umbrella of the company's long-term sustainability approach “Brewing a Better Future”.
31 Mar. 2011