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.
Contract signed in Beijing drinktec is now a co-organiser of CBB
Covering the period up until 2024, the agreement encompasses a total of seven events. The cooperation will be expressed for the first time at CBB 2012. Messe Mьnchen GmbH (MMG), as the organiser of drinktec, and its Chinese subsidiary MMI Shanghai, will in future be the contact and contracting party for all international, non-Chinese exhibitors at CBB. This responsibility also involves acquisition of these exhibitors, as well as looking after and advising them in advance of and during CBB.
The contracting parties are on the one side MMG and its subsidiary MMI Shanghai, and on the other the Beijing Zhongqing Heli International Exhibition Corporation (BZHC) as the organiser, and the China National United Equipment Group Corporation (CNUE) as the licensee of CBB. The contract came into effect upon signing on 2 August 2011. The next CBB takes place from 19 to 22 September 2012 at the new China International Exhibition Center in Beijing.
For drinktec, this partnership with CBB has a high strategic significance. Commenting on this, Dr Reinhard Pfeiffer, Managing Director of Messe Mьnchen, said: "The worldґs leading trade fair drinktec takes place every four years. Our goal is to also show a presence between each drinktec both nationally and internationally in the relevant markets. The agreement with CBB is an important cornerstone in this. It secures us the required presence and influence in the important Chinese beverages market. It means that in China, too, we are a contact partner for our top customers worldwide and as a result can further strengthen the world-leading trade fair drinktec in Munich. I am confident that drinktec and CBB will complement each other very well."
CBB hopes that the cooperation with the sector leader in Munich will further strengthen its international reputation. Referring to the contract, Mr. Li Zhihe, vice general manager of CNUE, commented: “The cooperation with MMG will bring impetus to the sustainable development of CBB. It will be a win-win cooperation between CBB and drinktec.”
Many of the exhibitors who take part in drinktec, among them many German companies, also exhibit at CBB. For them China, along with India, is the worldґs most important growth market. "These companies are used to the extremely high quality standards that they enjoy at the worldґs leading trade fair drinktec in Munich," explained Richard Clemens, Managing Director of the Food and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen) affiliated in the VDMA (Germany’s engineering federation). "As MMG and MMI Shanghai will be organising the international participation at CBB, these standards are now guaranteed there, too. As such we, on behalf of the manufacturing industry, very much welcome the cooperation between drinktec and CBB."
In addition to CBB, Messe Mьnchen has a further key involvement in a major global market – in India, where the company organises the trade fair drink technology India (dti) every two years in Mumbai. The organisation of this event is handled via Messe Mьnchenґs subsidiary in India, MMI India. In Germany, an agreement was reached with Nuremberg Trade Fair (Messe Nьrnberg) in November 2010. At Messe Nьrnbergґs international trade fair Brau Beviale, Messe Mьnchen organises PETpoint, the PET segment of drinktec, in the intervening years between each drinktec. "This means drinktec is strategically and conceptually very well set up, and ready for the future," explained Petra Westphal, Exhibition Director of drinktec 2013.
The contract between MMG and CBB marks the provisional conclusion of talks that started back in autumn 2009 and which resulted initially in a marketing agreement regarding CBB 2010. A total of 583 exhibitors took part in CBB 2010, 225 of them from outside China. CBB is regarded as the most important sector event in China and the Asia-Pacific Region. Since its premiere in 1995 it has attracted an ever increasing number of exhibitors and visitors.
drinktec is regarded in the sector as unequivocally the worldґs leading trade fair for beverage and liquid food technology. It can look back on a 60-year history. In 2009 drinktec attracted 1,402 exhibitors from 72 countries. On the six days of the fair, almost 60,000 visitors came to the exhibition centre in Munich, more than 33,000 of them from outside Germany. The next drinktec takes place from 16 to 20 September 2013 at the New Munich Trade Fair Centre.
Click here for pictures of drinktec in our image database online.
This press release including a photo is also available for download from: www.drinktec.com
Further information about drinktec:
Further information about CBB:
Contact drinktec, Messe Mьnchen
Messe Mьnchen GmbH
drinktec Press Office
Johannes Manger and Maritta Dцtter
Tel. (+49 89) 949-21482
Fax (+49 89) 949-20689
e-mail: [email protected]/ Marit[email protected]
Contact China Brew China Beverage (CBB)
Tel: (86 10) 66085371/ 66017874
Fax: (86 10) 66018904
e-mail: [email protected]
Contact MMI Shanghai
Tel. (+86 21) 2020 5500
Fax (+86 21) 2020 5588
E-mail: [email protected]
Further information about Messe Munchen: www.messe-muenchen.de.
2 Aug. 2011