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.
Aiming to improve the company’s competitiveness and customer service Compa??a Cervecera modernises its production centers
- The start up of the plan means a 4.4 million Euro investment.
Santa Cruz de Tenerife, October 5, 2011 - Compa??a Cervecera de Canarias has decided to give a new boost to the modernisation of its two factories in Santa Cruz and Las Palmas, to increase business and customer service competitiveness as well as its presence in the local and mainland markets. The modernisation includes an advanced storage system adapted to the new business tendencies.
The start up of the plan represents a 4.4 million Euro investment in its two factories in Tenerife and Gran Canaria. The factories will become modern multifunctional production, service and logistics centers and will be better integrated into their surroundings.
The modernisation project will be carried out in several stages. It stands to save more than three million Euros in the production process through new machinery allowing a reduction in energy consumption and the production of new formats for its brands.
Other important parts of the plan include embellishing the facilities' exteriors in order to achieve a better integration with their surroundings, as well as a 1.3 million euro investment in a new storage system, which will mean the installation of new machinery. This will increase the storage area by up to 18,840 square feet with a capacity of 2,750 pallets. Also, it will prepare the facilities for the possibility of outsourcing the warehouse management, contributing to the industrial development of the islands.
With this measure, the Company increases its potential for development, enabling the development of new projects like exports to mainland Spain and other markets. It also facilitates future growth, assuring employment, investment and activity in all its work places.
About Compa??a Cervecera de Canarias
Compa??a Cervecera is one of the main national breweries and one of the main engines in the economic and social development in Canarias: it boasts the creation of almost 900 direct jobs and almost 7,000 indirect and induced jobs; it is shareholder of several companies in Canarias; and it gives priority to local supplies in order to carry out their production. The company, part of the international group SABMiller, has more than 300 business owners from Canarias among its shareholders, which represent approximately 30% of the total, and are represented by two members on the Board of Directors.
Compa??a Cervecera produces its own brand of beers Dorada and Tropical, under Carlsberg licence, and the apple juice Appletiser; it distributes international brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, Guinness and Kilkenny. Also, it has other beverages such as the energetic drink Red Bull and premium juices Granini.
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.
6 Oct. 2011