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. Ala. Legislature expands brew pubs, breweries
The Senate voted 19-6 Wednesday to go along with changes the House made Tuesday night in a bill sponsored by Republican Sen. Bill Holtzclaw of Madison. If it is signed by the governor, it will allow brew pubs to sell their beers through other locations and allow breweries to serve their products at their plants.
"It's the biggest change in Alabama brewing laws since the repeal of prohibition," said Gabe Harris, president of Free the Hops. The grassroots group of beer enthusiasts has been pushing for several years to change Alabama's beer laws.
Holtzclaw said he expects the bill to result in more brew pubs and breweries because it will create new revenue streams to help ensure their profitability. "I view this as an economic development bill," he said.
Free the Hops vice president Stuart Carter said he foresees the day when Alabama will have enough of the businesses that state tourism officials will want to print a tourism brochure for driving tours like they do for music attractions, civil rights landmarks, top restaurants and other tourist attractions.
"The state will be able to print a beer tour map of the state where people can go from Huntsville to Mobile visiting brew pubs and breweries," he said.
Carter and Harris said they are not aware of any brew pubs in Alabama that remain in operation because they found it hard to turn a profit under Alabama's restrictive laws. Montgomery's brew pub, which was located in a historic building downtown, closed last year because of declining business.
Holtzclaw's bill does away with a requirement that brew pubs include restaurants with at least 80 seats and that they be in historic buildings. Instead, they would have to be in historic districts or areas designated as economically distressed by city councils. In the past, they couldn't sell their beer at any other locations. Holtzclaw's bill will allow them to sell to a wholesaler, who could offer their beer in other restaurants and retail stores.
Carter, a self-described "beer nerd," said the goal is to give brew pubs new revenue by having their products available in grocery stores.
Harris said Alabama has three breweries in Huntsville, one in Birmingham and another about to open in Gadsden, but none regularly offers tours because they can't offer their products for tasting.
"No one wants to tour a brewery without being able to try the product," Harris said.
The bill allows them to offer free samples or sell their product to visitors to consume on site.
Harris said he and other Free the Hops members were in a bar Tuesday night listening to the House over the Internet when it passed the bill 58-25. They celebrated with a toast to the House and planned another Wednesday night for the Senate.
Republican Sen. Bryan Taylor of Prattville said he voted against the bill because it applies statewide and some cities may not want breweries or brew pubs.
Gov. Robert Bentley's communications director, Rebekah Mason, said he has not indicated whether he will sign the bill. But Holtzclaw, a freshman, said he's optimistic about the first bill he has guided all the way through the Legislature.
Two years ago, Free the Hops got the Legislature to pass a law allowing stronger beer to be sold in the state, which opened up Alabama to more specialty and foreign beers.
3 Jun. 2011