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. Coast Brands Announces its Craft Beer Division
Bob Groux, Founder & CEO of Coast Brands explains, “Craft Beers, like many of our non-alcoholic brands, face challenges with distribution and chain authorizations. Beer distributors represent the vast majority of our network so it was a natural fit for us to get into the beer business. The distributors we work with have been asking us to bring them high quality crafts; now the time is right, and Crazy Mountain and Hardtail are both excellent brews.”
Located in the heart of the beautiful Vail Valley, Crazy Mountain Brewing Company was founded by Kevin Selvy and Marisa Aguilar who combined their passion for craft beer to create Vail Valley’s first production brewery. Crazy Mountain’s year round craft beer styles include its flagship Amber Ale, Lava Lake Wit, Mountain Livin’ Pale Ale, Old Soul Strong Belgian Golden Ale, Hookiebobb IPA and Cara de Luna Black Ale. Available in draft and smartly packaged in 12 oz cans, each style of hand crafted beer offers the brewmaster’s unique take on the traditional styles. “Coast Brands is the perfect partner for us,” Kevin Selvy states. “The vast distribution and retail market knowledge that Coast provides gives our brand instant leverage with the largest and most reputable beer distributors in the Nation.”
Hardtail Brewery, based in Johnston, Colorado, has already established a large presence in Colorado and is now ready to expand to other states. Hence, their Coast Brands partnership was formed. Available in draft and 12 oz bottles, Hardtail Lager is an Amber American Lager that is fermented cold and lagered for 30 day thus providing the active hardtail consumer a crisp full body drinkable beer, not too heavy, not too light, just right. “We are extremely excited for the expansion opportunities that Coast Brands brings to the table” says Jacob Unrein. “We are ready to enter additional markets”.
The initial focus for both craft beer brands will be California, Texas and Florida with the subsequent goal to distribute nationwide. Groux’s advice to his new craft beer clients is to expand strategically and slowly. “One of the issues that many breweries face is capacity. We want to ensure that our brands can handle the demand/volume in the target states before expanding further.”
Hardtail and Crazy Mountain have both been very well received by major distributors in the Coast Brands Network in all three markets and shipments into California and Texas should begin next month.
About Coast Brands Group, LLC
Coast Brands Group, LLC, located in Newport Beach, California, is the leading brand representation provider for companies looking to establish or expand sales and distribution to key markets in the United States. Its DSD Network is approaching 100 distributors that together reach over 100,000 retail accounts in the West, Southeast, Midwest and Southwest. Coast Brands is unique in that it represents brands to DSD distributors as well as retailers. Its impressive list of brands/clients include New Leaf Teas & Lemonades, HER, Kronik Energy, Celsius and OhYeah!, ACTIVATE and, most recently, craft beer brands Crazy Mountain and Hardtail.
22 Jul. 2011