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Global hop market

A 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 Russia

Germany 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.

Heineken to leverage global scale by consolidating media buying for its brands

Heineken announced today that it is to consolidate media planning and buying for its brands worldwide into one media agency. Two agencies, Publicis’ Starcom MediaVest and WPP’s MindShare, have been shortlisted. The selected agency will be tasked with maximizing the effectiveness of the company’s world-class brand building and fully utilizing the company’s increased buying power. Heineken plans to have the new agency in place by the middle of 2012.

Heineken already works with both agencies in the majority of its regions. Both have the capability to provide a global service and have the scale to give Heineken the improved performance the company is looking for in all its brands. The chosen agency, in first instance, will focus on Heineken’s top fifteen markets (1), which represent 85% of the company’s media spend.

Alexis Nasard, Chief Commercial Officer at Heineken said: “Heineken is the world’s most international brewer. We have the opportunity to leverage the benefits of our global scale to achieve efficiencies and quality improvements in our media buying.” He added: “The ultimate goal is to improve our media performance through better strategy, planning and execution, while maintaining the absolute requirement for stand-out brand communication in all channels we choose to focus and operate in.’’

The move to globalize media buying is in line with a number of other initiatives across several aspects of the company’s business designed to leverage its global scale, including the appointment of a global advertising agency for the Heineken brand and the creation of the Global Business Services organization.

1 Dec. 2011



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