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.
US. Springfield Brewing Company sold
A group of six Springfield investors has purchased the Springfield Brewing Company from the Paul Mueller Company for $3 million.
Bryan Bevel, director of operations at the Springfield Brewing Company, said the deal with Front Row Property LLC closed Monday.
"A group of local investors, headed by Ashton Lewis, the master brewer at Mueller company, has bought Springfield Brewing Company," said Bevel, who also is one of the investors.
"It's going to mean bigger and better things here. This is a group that cares about craft beers, that cares about quality."
Along with Lewis and Bevel, the new owners include Cam Collins, Christina Chanter, John Schnoebelen and Rhett Smillie.
David Moore, president and CEO of Paul Mueller Company, said the brewery has been a good showcase for the brewing equipment the company makes at its Springfield plant. Mueller opened it in 1997.
"However, operating a brewery and restaurant is not core to our business," Moore said.
Mueller sold the brewery at 301 S. Market Ave. for $3 million, which includes a $400,000 promissory note payable over five years.
Bevel said the brewery unveiled a new menu on Nov. 2 and the purchase wouldn't affect the staff of about 50 employees.
"We intend to carry on business as usual," Bevel said.
Along with a full-service restaurant, Springfield Brewing Company makes six varieties of beers at a time -- and 10 to 12 varieties a year -- using specialized brewing equipment manufactured by the Mueller company.
Lewis, a nationally recognized brewer, has been the master brewer at Springfield Brewing Company for the last 14 years and was instrumental in the company's start-up as the Springfield Brewing Company.
He will continue his job marketing brewing equipment for Mueller.
According to the investors, Springfield Brewing Company will continue its close ties with the Mueller Company.
The steel manufacturer will still be able to use the brewing company as its flagship example of the high quality and American-made brewing tanks that are sold across the country, to many of the nation's top breweries, according to a news release from the investor group.
In addition, Paul Mueller, the founder of Paul Mueller Company, will still hold mug No. 1 within Springfield Brewing Company's "mug club."
"There is no question, Paul Mueller Company had the ability and foresight to create SBC -- those ties and roots will not be forgotten," Lewis said.
"It has been my dream to find a group committed to the continued growth of SBC, so that it can not only remain a cornerstone of Springfield's downtown community that it has been for so many years, but so that SBC can be taken to the next level -- brewing quality beers for the region," Lewis said.
29 Nov. 2011