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.
Russians Consumed about 10% of Dark Kozel More Than Last Year
In Russia, they consumed about 10% more than last year
Out of all countries of the former Soviet Union, the sales are the highest in Russia, where they consumed nearly 600,000 hectolitres of Dark Kozel during the last 12 months. And the popularity of dark beer is still on the rise. During the last two years, the sale share of the brand in stores doubled comparing to other beer brands. The number of distribution points in Russia carrying Dark Kozel has risen too. That brought with it a 10% rise in consumption comparing to the same period of the last year. Besides Russia, Velk? Popovice beer is doing great in other post-Soviet countries as well.
The popularity of Dark Kozel in Finland
Good news for Velk? Popovice brewery also comes in rise in popularity on other European markets. Finland is the second largest market for Dark Kozel right after Czech Republic where we drink about 12 million Dark Kozel beers a year. Nearly 2.5 million beers made of the special mixture of dark hops are exported there. "Kozel is the most popular ‘non-domestic' brand in Finland, and it represents the symbol of the whole category of dark beers for them," said Vladim?r Van?k, Velk? Popovice Kozel Brand Manager.
Dark Kozel is exported to three continents
In total, Dark Kozel is exported to 30 countries on three continents. There are seven new export destination countries that were inspired by the commercial success of the beer in other countries. Israel, Azerbaijan, and South Korea are some new exotic destinations. The biggest sale rise is recorded in Switzerland, but far-east countries such as Kyrgyzstan, Kazakhstan, and Korea are quickly closing in.
Velk? Popovice Kozel takes home trophies from beer competitions
The Dark Kozel's success abroad is no matter of luck. In Czech Republic, Velk? Popovice Dark Kozel is the leading player on the market of dark beers, and its qualities are supported by numerous successes on all kinds of competitions. It took home gold medals from International Beer Championship in Australia, and International Quality Competition Monde Selection in Belgium. Last year, it added a silver medal in category of dark beers from International Beer Competition Australian International Beer Awards.
Notes for editors:
- In Velk? Popovice brewery, the first batch of beer was brewed on December 15, 1874, and just one year later, 18,000 hl of beer were brewed and sold. Only a few years later, the brewery became the third biggest brewery in the country. They were famous especially for their dark, heavy beer. Velk? Popovice brewery is a part of Plze?sk? Prazdroj Company.
- A signature restaurant "Velkopopovick? Kozlovna" was opened in the area of the brewery last year. Already sixth "Kozlovna" with attractive interior and unique, unfiltered Velkopopovick? Kozel beer on tap symbolically concludes the first part of the new visitor tour of the brewery.
- With its total sale of 9,9 millions of hectolitres during the calendar year of 2010 (including licenced productions abroad) and with its export to more than 50 countries worldwide, Plze?sk? Prazdroj Inc. is the prominent beer producer in the region and the biggest exporter of the Czech beer.
- Plze?sk? Prazdroj Inc. is the member of SABMiller plc. group. Pilsner Urquell is the international flagship brand of the SABMiller brand portfolio.
- SABMiller is one of the world's biggest beer brewing companies with beer brewing activities or distribution in more than 60 countries across six continents. SABMiller's brand group include such important brands as Pilsner Urquell, Miller Genuine Draft, Grolsch, Peroni Nastro Azzurro, and many other successful regional brands.
20 Dec. 2011