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.
Budweiser Budvar increased its gross profit by 7% last year
“Considering the economic situation in Europe and the Czech Republic and in view of the development of the Czech brewing industry, we see Budweiser Budvar’s 2010 results as very good. 115 years after its foundation, the brewery is a modern company with a good technical base, high human potential, beer of excellent quality and the strong Budweiser Budvar brand,” says Budweiser Budvar’s CEO Ji?? Bo?ek. The company’s economic results provided the brewery with a chance to invest CZK 167.7 million etc. into modernisation of production capacities, sales support, logistics and the IT system.
Last year, Budweiser Budvar sales noted a 2% year-on-year decrease. That represents a substantially better result than the result of the Czech brewing industry as a whole. The members of the Czech Brewers and Maltsters Association (hereinafter referred to as CBMA) actually registered a total sales decrease by 7.92%. Budweiser Budvar accomplished the highest export in its history last year: almost 605,000 hectolitres were exported to 58 countries, which is annually more by 4.3%. On the other hand, as the CBMA indicates, the overall export of its member breweries decreased by 4.2% in the same period. Budweiser Budvar thus became last year’s second largest beer exporter in the Czech Republic, when its share of the Czech export amounted to 21.4%. Budweiser Budvar’s 2010 domestic sales fell by 7.2%. Besides the economic insecurity of the consumers and the overall beer consumption decrease, the domestic sales were negatively affected also by the excise tax and VAT increase. Last year, Budweiser Budvar launched many new special beer packagings on the market as well as newly beginning to export to India.
29 Jul. 2011