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.
GermanMalt becomes part of GrainCorp Malt
GrainCorp is a public listed company based in Sydney, Australia with a market capitalisation of about € 1.2 billion. The company is involved in grain handling and marketing and the processing of grain. The malting unit of GrainCorp is one of the largest malting groups worldwide with a malt production capacity of about 1.2 million tonnes in Australia, Canada, USA and UK.
GermanMalt is one of the leading malting groups in Germany and runs four malt houses in Worms, M?lheim/Ruhr, Sangerhausen und Clingen. Furthermore GermanMalt has a toll malting agreement with Malzfabrik Kalscheuren in H?rth. Altogether the group sells more than 200.000 t of malt in Germany and worldwide.
The participation of GermanMalt in GlobalMalt GmbH & Co. KG as well as a 30% participation in GlobalMalt Polska Sp.zo.o. were sold at the same time to the partner Tivoli Malz GmbH, Hamburg.
Further delivery to domestic and international customers will takes place through GlobalMalt until approval by merger control and will be continued thereafter by the two partners separately in accordance with its customers. To the clients of GermanMalt there will not be any changes except the name change from GlobalMalt to GermanMalt. Delivery will be executed by the current supply plants and all contacts, management and staff will remain the same.
Through affiliation to one of the leading malting groups in the world GermanMalt hopes to achieve improved access to the growing international markets and the global brewing groups. In view of the decentralized structure of GrainCorp Malt our domestic business will be further strengthened and developed and clients receive the security of working with a solid and financially sound partner. Synergy effects are expected in export malt sales and barley supply with the newly opened GrainCorp Trading office in Hamburg.
Carl Otto and Peter Schill and Sjef Menu, Managing Directors of GermanMalt: ”We are glad to have found in GrainCorp a strategic investor who will consistently pursue our previous growth strategy and stands equally for the continuity in our business relation to customers. The affiliation to one of the biggest and financially soundest malting groups of the world means to our employees and ourselves a strengthening of our business in a changing and more competitive business environment.”
GrainCorp Managing Director and CEO Alison Watkins: “The European barley and malt sector has a major influence on world markets, as around half the world’s malt exports originate there. Because of the influence of Europe, it is strategically important for GrainCorp to be an active participant in that market. The sector is also reshaping, and now is the right time to enter Europe to take advantage of the changes happening there.”
“The acquisition of GermanMalt will mean GrainCorp’s malt sales into the growth regions of Africa and South America will be more competitive, and provides GrainCorp with a stronger customer supply proposition.”
“With GermanMalt, GrainCorp’s malt portfolio is strengthened, and our capability to meet the needs of brewers will be enhanced. The acquisition diversifies our earnings base and creates growth opportunities in the region.”
“Our recently opened Hamburg office will play an important part in delivering synergies associated with this acquisition, as will the ability to use GermanMalt as an additional source of supply to support our existing malt sales from North America and Australia.”
25 Jul. 2011