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.
Molson Coors International Expands Leadership Team
"We are fortunate to have attracted such distinguished and seasoned executives to the company and I look forward to Torsten, Celso and Lee joining our international leadership team," said Kandy Anand, President of Molson Coors International. “At Molson Coors, we are committed to accelerating our expansion into new markets and building up our capabilities, particularly in the areas of consumer marketing, supply chain and transaction work is essential to this aim. Leveraging this team’s proven strengths will significantly enhance our impact as we move forward with our global growth plans."
Kuenzlen is a veteran marketing executive with deep strategic, marketing and operational management skills, as well as demonstrated experience in building and leading international teams. During his 17 years with Coca-Cola, Kuenzlen led commercial and marketing operations across the globe, including Europe, Latin America & Asia, and was part of a management team tasked with transforming their business across Africa. He received a master’s degree in International Business Management from Rheinland Pfalz University in Germany, and served as an officer of the German Air Force.
White joins Molson Coors with more than 25 years in consumer products. His initial assignments were in engineering first with Silgan White Cap, then with M&M/Mars and Campbell Soup Company. More recently, White had accountabilities in general supply chain management with PepsiCo where he held the position of Vice President and General Manager, Americas Concentrate Operations. This included leading all aspects of the Supply Chain throughout the Americas (Canada to Southern Cone) and the Asia Pacific region.
Reichert brings nearly 20 years of experience in corporate and commercial law with a focus on securities, mergers and acquisitions, strategic alliances and equity and debt financings. Reichert has been recognized as a leading M&A attorney for a number of years by both the Chambers USA Guide to leading Business Attorneys and in the Best Lawyers in America. Reichert also has extensive experience in the global brewing industry having served as outside counsel to Molson Coors on a range of issues for nearly a decade. He earned his J.D. magna cum laude at the University Of Illinois College Of Law and graduated cum laude from Colgate University.
In 2008, Molson Coors established Molson Coors International to manage the expansion of its brand portfolio outside of the Company’s mature markets in the US, Canada and the UK. Molson Coors International now manages the growth of its brand portfolio across 47 countries. In the past year, MCI has announced new majority-owned JVs in China and India, as well as new contract brewing agreements in Spain, Russia, and Ukraine.
24 Aug. 2011