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.
Exbusinessmen to form brewery
Former IT consultant Russ Taylor and business partner Gareth Xifaras, a former PricewaterhouseCooper business consultant, are assembling their new brewery in a barn near Thame.
When the first beers flow in October, XT Brewing will joining a growing list of 20 county microbreweries.
Mr Taylor, 42, said: “We have both been brewing at home for a few years now, but were in industry with corporate jobs, and about two years ago decided we did not want that sort of life any more.
“We wanted to use some hands-on skills, we both had an enthusiasm for brewing, and we both love our beer.
“I have been learning the trade at the Windsor and Eton Brewery since then, and we have been looking around Oxfordshire at sites to open our own brewery.”
They have now taken out a lease on a farmyard barn near Long Crendon, Thame, to start their project. Equipment will be installed next month.
Mr Taylor said: “We want to appeal to more youthful demographic than the usual real ale crowd, and push it more to people in their 20s, 30s and 40s.
“We want to follow some of the American microbreweries, that do not have the history to hold them back.
“We want to be more adventurous with some Belgian and American style beers, and push the boundaries a bit.”
Microbreweries have continued to thrive in Oxfordshire despite the recession.
Shotover Brewery set up in 2009, Loose Cannon Brewery in Abingdon opened last year, and more pubs, including The Swan in Faringdon, have opened their own brewplants.
This year’s Cask Report, backed by real ale breweries, revealed that while pubs are still closing over Britain, 3,000 more pubs in the country are serving real ale than last year.
Tony Goulding, from Oxford Campaign for Real Ale, said: “We have more breweries in the country now than at the end of the Second World War.
“As the big breweries scratch around with their interpretation of real ale, the microbrewery scene has taken its place.
“With the craft breweries, a whole greater range of tastes, flavours and styles are on offer as opposed to standard bitters and milds. Many are available in Oxford pubs.
“It is a change we would never have dreamed of 10 years ago.”
31 Aug. 2011