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.
Calgary soaking up beer’s booming market
Several new ventures, including the Craft Beer Market, are due to open in the coming weeks, each offering a different twist to the city's specialty suds market.
The market, opening June 17 on 10th Avenue S.W., will offer 104 different brands of beer on tap in the 11,000-squarefoot space previously occupied by the Mother Tuckers restaurant.
In addition to familiar favourite brands, the business will offer micro-brews, imports and specialty beers.
"Beer is the new wine.
They're doing a lot of different things with beer," said Rob Swiderski, one of the new owners. "They're moving away from a lot of the traditional beers . . . where it was only hops, barley, water, malt. Now people are infusing with fruit.
They're putting them in old Jack Daniels casks so they take on a bit of the rye flavour.
"It's just turning into quite an art form itself, especially the craft beer movement."
According to Statistics Canada, beer remained the alcoholic drink of choice for Canadians in 2010 reaching close to $9.2 billion in sales, up 3.8 per cent from the previous year. In Alberta, beer sales neared $980 million in 2010, a year-over-year hike of 4.5 per cent.
Mike Mendelman, owner of Wurst Restaurant and Beer Hall, to open June 15 on 4th Street S.W., the concept is Bavarian-and German-inspired: a beer hall with big, long communal tables. The restaurant is on the main floor and the beer hall downstairs.
The 20 beers on tap will largely be European based, in addition to Big Rock, Okanagan Springs and Mt. Begbie, said Mendelman.
"Beer is hot right now. Alcohol, like anything else, goes in cycles. So in the boom times we experienced in the early part of this decade from 2001-2002 to about 2008, wine was very hot," said Mendelman.
"Everyone discovered wine and then you had wine bars. Then we had a recession and it had a little bit to do with creating beer as the next sort of everyman, little bit more budget-conscious (type). It's not pretentious. It's fun."
Consumers are increasingly seeking out craft beers, which have seen an explosion of popularity in recent years.
"Beer is so approachable for most segments of the population. Affordable. Even a very, very well-crafted micro-brew beer. A pint of it is still only $7," he said.
Stuart Allan has been a fixture in the restaurant/bar industry in Calgary for 30 years. He opened Buzzards Restaurant at 140 10th Ave. S.W., in 1980 and followed that with the opening of neighbour Bottlescrew Bill's Pub in 1985. Now it's expanding its beer list to more than 250 different beers from around the world.
"We always used to have a big selection. We had 150 for quite some time. But my son has taken over the business now and he's added an extra 100 beers and is working on adding more," said Allan.
"The growth is in domestic micro-brewed beers because there's many more now than there used to be," Allan said. "They used to have a much smaller market area so we're able to access micro-breweries from across Canada. And all these little micros exploring and pushing the envelope and coming up with different combinations of taste, flavour and technique."
He said growth is also in bottle-conditioned beers primarily from Europe that have undergone a secondary fermentation in the bottle.
Consumers are more "individualistic" than before and are keen to try something different and "they're more keen to experiment than they were before," added Allan.
Jamie Vadori, general manager of Wild Rose Brewery in Calgary in the old Currie Barracks site, said the craft beer market has been a trend growing for a number of years across North America, born out of the Pacific Northwest and spreading from there. Wild Rose has a brewery and a pub on site.
"As people are gaining a greater and greater appreciation for high-quality, fullflavoured brews, in our case made locally from local ingredients, they've come to like what they taste," said Vadori. "Beyond that, I'd suggest that craft brewers like Wild Rose and others have really been leaders in innovation bringing unique styles and interpretations of those styles to Albertans and Calgarians. And Calgarians have responded really well."
Justin Leboe, with the Concorde Entertainment Group in Calgary, said the group will be opening the National Beer Hall, at 5th Street and 17th Avenue S.W., in early fall. The group has several other establishments in the city.
The National hall will be a contemporary North American one, as opposed to the traditional German or continental European kind.
"Our focus is on craft beers, micro-brews; small-batch brewing, high-quality brewing rather than maybe some of the bigger labels," said Leboe.
"It will be focused on a program of wherever possible sourcing beers out locally then looking at a wider spectrum of beer outside of that after we've exhausted everything we could find," he said, Beer -about 20 on tap and as many as 100 bottled selections -will be served in one-litre steins.
9 Jun. 2011