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.
Sweetening, Color, Flavor – New Ways to New Beverage Concepts at drinktec
New Beverage Concepts
One absolute must-visit for marketing and technology divisions of brewing and soft drinks groups and SMEs, dairy producers and liquid foods manufacturers, is the “Special Area New Beverage Concepts” in Hall B1. At this location manufacturers will be presenting and explaining their new sweetening, coloring and flavoring strategies. BENEO, for example, a leading manufacturer of functional ingredients, will be demonstrating ideas for a better balance in energy-boosting products: “Consumers are increasingly focusing on drinks concepts that release a steady supply of energy, avoiding the so-called ‘boost and crash’ effect. It is ingredients like ginseng or Palatinose™ (Isomaltulose) that rate highest on this criterion, as they are natural products that also offer nutritional benefits,” explains Jens Bцhm, Marketing Manager for BENEO. The New Beverage Concepts Special Area has its own catering area enabling sampling of innovative drinks right there. The Special Area is a separately designated and designed area located in the exhibition section featuring Raw Materials, Additives and Agents. The New Beverage Concepts Special Area is a promotion by drinktec in cooperation with Dr. Harnisch International Publications, Nuremberg.
It has to taste good. That has always been the supreme imperative governing the development of beverages and liquid foods. But what exactly do we mean by ‘taste good’, or indeed by the word ‘taste’ itself? It’s not a great mystery, in fact. The tongue can distinguish precisely five types of taste: sweet, sour, bitter, salty and satisfyingly meaty. Everything else about ‘taste’ comes from the eyes and the nose, which are incomparably more sensitive. All these sense impressions trigger emotions or memories, which our brain processes into an overall judgment. And finally we come up with “I like it” – or “I don’t like it.”
Sweet = Good
It’s because of the emotions that taste becomes a complex matter after all. For example, ‘sweet’ stands for ‘good’, and probably has done ever since our primeval forebears came out of East Africa. Sweet foodstuffs thus almost automatically trigger that “I like it” response, deep inside us. However, partly as a result of changing consumer lifestyles, new requirements keep emerging, as do new concerns motivating alternative approaches. These concerns come with category labels such as obesity, dental health, diabetes, glycemic index or ‘natural’. All these subcategories will be represented by displays of relevant products in Hall B1 at drinktec. They range from calorie-free sweeteners through natural and almost blood sugar-neutral substitutes for sugar, special sugar combinations for sports use and classics like saccharose all the way to brand-new alternatives. The EU approval of steviol glycosides as a food additive (E 960) first and foremost enables the sweetening of drinks using new concepts based on stevia. Obtained from the leaves of a plant named stevia rebaudiana, steviol glycosides are up to 300 times sweeter than sugar, and calorie-free. A further interesting option, on which visitors to drinktec can find out more at first hand, is the use of naturally sweet drink bases such as malt extracts or – distinctly more exotic – coconut water.
But sweetness isnґt the whole story, as Caroline Sanders, Global Marketing & Communications Director, Tate & Lyle Speciality Food Ingredients, points out: "These days a whole variety of substances can be used or combined with each other to develop sweeteners and other sugar substitutes. As well as the property of sweetness, With sugar-free or sugar-reduced products we have to pay attention not only to the proper of sweetness, but also in particular to the sensory parameter of body/mouth feel."
Coloring from Spinach and Red Cabbage
Naturalness is also currently the headline theme dominating the world of flavors and colorings. Examples of well-known natural pigments include chlorophyll and carotene. It has also been found that Spirulina microalgae are a natural source of blue pigment. Other pigmenting extracts again are derived from beetroot, red cabbage, spinach or elderberry. Among natural flavors the trend is to concepts based exclusively on the source fruit or plant from which the aroma takes its name. However, it is worth remembering that, for very good reasons, some flavors do have to be made or harvested from other natural sources. For instance, the entire world harvest of strawberries would be nothing like enough to match the demand for natural flavors produced exclusively from strawberries. Also represented at drinktec will be natural ‘brown’ flavors like toffee, cappuccino, walnut, almond, caramel or nut. These are flavors of particular interest to the milk industry – for which drinktec has long been a major calendar fixture, to the extent that in 2009 no fewer than 22 percent of the trade visitors to the show were from that segment.
Naturalness and Technology
The technological implications of the switchover to natural sourcing for flavors, colorings and key functional ingredients are far-reaching. Certain colors are just not provided by the natural environment, or substances used may prove less stable in terms of storage life, temperature or pH tolerance. “This is why brilliance of color, natural sourcing and stability were the objectives driving development of the new red tones from the black carrot,” says Christian Benetka, Senior Product Manager Colors for DцhlerGroup. “The pigmenting concentrates are now superior to other anthocyanin-based colorings in terms of stability. They also contain no sulfur dioxide.” The prerequisite for innovative developments is thus always a deep resource of specialist knowledge, built up through trial production runs, sensory analyses and, not least, representative keeping-quality tests. All the more important, then, that drinktec exhibits not merely the ingredients but also the technology, in particular the entire technology of production and bottling. That will happen in this format in 2013 at only one place on the globe: in the exhibition halls at Messe Mьnchen, at drinktec.
Further information: www.drinktec.com
Click here for photos of drinktec.
drinktec is the world’s leading trade fair for beverage and liquid food technology. It is the most important trade fair for the sector. Manufacturers and suppliers from all over the world – global companies and SMEs alike – meet up here with all sizes of producers and retailers of beverages and liquid food products. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. At this event manufacturers present the latest technology for production, filling and packaging of beverages of all kinds, and for liquid food – also encompassing raw materials and logistics solutions. The themes of beverages marketing and packaging design round off the portfolio.
drinktec 2013, which takes place at the Messe Munchen exhibition centre in Munich, from September 16 to 20, 2013, is expected to attract around 1,500 exhibitors from over 70 countries and approximately 60,000 visitors from more than 170 countries.
3 Apr. 2012