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.
Harbor Brewing Company Releases Update
As we enter the final quarter of 2011, management has already begun strategizing on the positioning of its portfolio companies and the focus and direction of the respective businesses for the year 2012. As you are aware, we own synergistic companies in the brewing, baking and restaurant industries. As previously announced, sales revenues at the Sackets Harbor Brew Pub restaurant (www.sacketsharborbrewpub.com) are up in 2011 by over 40% from 2009, and expenses have been kept in check creating stronger cash flows and allowing us to significantly reduce debt on the restaurants. Additionally, we have opened our newest restaurant, Sackets Harbor Anchor, with very positive customer feedback. While we have not yet seen a full year's results at the Anchor, this owned-but-previously-empty property is now being utilized to positively contribute to the company. It appears our restaurant assets are now certainly on the right track.
In 2012, management will put forth tremendous effort and capital into both its brewing and its baking holdings. The US beer market is a market of over $100 billion, and by far the fastest growing segment in this market is craft beer. Growth of the craft brewing industry in 2010 was 11 percent by volume and 12 percent by retail dollars. In August of this year, the Brewers Association announced that craft brewed beer dollar sales were up an additional 15 percent in the first half of 2011 and that volume of craft brewed beer sold grew 14 percent for the first six months in 2011. This is viewed by many as an indication that the craft beer segment is still strong and that craft beer is apparently showing no signs of peaking. Our resources will be aggressively allocated to attempt to position Harbor Brewing Company to participate in this growth. This growth may come by increased market penetration of Sackets Harbor Brewing Company's existing brands and through its launch of new products. We will also seek out partners for contract brewing or for acquisition. The craft beer industry is highly fragmented, with over 1,000 brew pubs, 600 micro breweries, and 80 regional craft breweries. This may provide Harbor Brewing Company with the opportunity to grow through strategic acquisition.
The commercial bread industry in the US is over $20 billion, with premium artisan bread being one of the industry's fastest growing segments. Alteri Bakery (www.alteribakery.com) is the areas largest and most well-known artisan bakery. Alteri Bakery is currently planning the launch of several new products for both the retail and food service channels, and with the addition of certain equipment the company could increase its production capacity by over five times its current levels. Finally, the Alteri Bakery is in talks with potential distribution partners who have current infrastructure in place that could potentially increase the bakery's Watertown, NY trading range from hundreds of miles to thousand of miles.
About Harbor Brewing Company, Inc.
Harbor Brewing Company, Inc. owns and operates brewing, baking, restaurant and real estate assets. In the brewing industry the company develops and acquires craft brewing companies and select craft beer labels. The company's holding, Sackets Harbor Brewing Company, develops, produces, and markets microbrewed beers such as the award winning "War of 1812 Amber Ale," "Thousand Islands Pale Ale" as well as "Railroad Red Ale", "1812 Amber Ale Light" and "Harbor Wheat" specialty beers. Its "1812 Amber Ale" is the company's flagship brand and was the winner of a Silver Award at the World Beer Championship. Alteri Bakery, which has serviced the northern New York region with quality baked goods since 1971, produces the area's only "true" Italian breads and specialty pastry items, such as cakes, cookies, muffins, bagels, and specialty gift baskets. Alteri's products can be found at local restaurants, grocery stores, schools, and its own store. Harbor Brewing also owns the popular dining establishments Sackets Harbor Anchor and Sackets Harbor Brew Pub.
For more information, please contact: Harbor Brewing Company, Inc. Email: [email protected]
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
SOURCE Harbor Brewing Company, Inc.
Read more: http://www.sacbee.com/2011/10/04/3958439/harbor-brewing-company-releases.html#ixzz1ZpuWWYKw
4 Oct. 2011