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.
Opinions about China Brew & China Beverage 2012: “CBB is on the right path to becoming number 1 in Asia”
Wang Xin General Manager, Beijing Zhongqing Heli Machinery Equipment
Co., Ltd, praised the intercultural interaction between the
participating organizers from China and Germany: "CBB 2012 is a big
success. We received a lot of positive feedback from the trade fair
visitors as well as from Chinese and international exhibitors. This
success is the result of the collaboration between China National United
Equipment Group Corp and Beijing Zhongqing Heli International Exhibition
Co. Ltd as well as MesseM?nchen and its subsidiary MMI Shanghai. I would
like to express my thanks for the support of industry, our friends and
colleagues and for the hard work of the complete CBB team."
Dr. Reinhard Pfeiffer, Managing Director of Messe M?nchen
International, sees the start of long-term, strategic collaboration in
CBB 2012: "This CBB has laid the foundation for an axis Munich-Beijing.
drinktec in Munich brings the complete beverage and liquid food industry
together from the whole world every four years, while CBB serves the
most important market in Asia every two years. This constellation not
only strengthens both trade fair organizers, but it also provides above
all advantages for our customers, exhibitors and visitors. Our shared
objective is to solidify and expand this axis further. The contract with
our Chinese partners is valid until 2024. Consequently, we still have a
lot of time to make things even better."
Despite all of our cultural differences and prejudices, those
responsible from Germany and China never lost sight of the objective,
according to Petra Westphal, Project Group Manager at Messe M?nchen and
Project Director responsible for drinktec: "In the space of only 12
months, two cultures and two trade fair organizers have grown together
and achieved something great. That only works if all involved join
forces, are willing to compromise and practice mutual respect. CBB 2012
is an example of successful intercultural collaboration."
Volker Kronseder, Chief Executive Officer of Krones AG and President of
the Exhibitor Advisory Committee of drinktec, also praised the
collaboration between drinktec and CBB: "This is exemplary, especially
in an important market such as China. For international exhibitors, it
is important that collaboration with drinktec ensures a certain level of
quality, including in the areas of service and infrastructure. In this
respect, CBB 2012 already provided substantial improvements."
From the viewpoint of Richard Clemens, Managing Director of the
professional association Food Processing and Packaging Machinery in the
German Engineering Federation (VDMA), CBB has continued its success
story and set new standards with its moving to the new trade fair
grounds NCIEC: "Thanks to collaboration with Messe M?nchen, CBB now has
a strong partner supporting it for further internationalization and
professionalization. It has become established as the most significant
platform for China and is on the optimum path to becoming the leading
industry meeting point for Southeast Asia."
Prof. Dr.-Ing. Matthias Niemeyer, Chief Executive Officer of KHS GmbH,
stated that he is "very satisfied" with the course of the trade fair.
"In addition to meetings with local Chinese customers, we also had
intensive discussions with representatives of large multinational
Martin Hammerschmid, Managing Director of GERNEP GmbH, clearly saw the
effects of the initial collaboration of drinktec at CBB: "We have been
participating at CBB for many years and are very pleased about its
increasing importance for the Chinese and the complete Asian market. As
a result, the collaboration of drinktec, MesseM?nchen, with the
organizers of CBB is that much more important for us. The professional
stamp of the team from Munich within the international participation
could be seen clearly and increased the quality of CBB even more. The
presence of market leaders is also impressive. We were very satisfied
with the visitors, who also came from the non-alcohol sector in addition
to the beer sector. Decision-makers were on site and business deals were
concluded. We are already looking forward to our exhibit at CBB 2014 and
of course at the global leading trade fair drinktec in Munich before
Olaf M?ller, Vice President of Pentair Process Technologies Beverages
& Niches, also assessed CBB 2012 as a total success: "There were a lot
of visitors at the trade fair, and the quality and quantity of visitors
again underlines the importance of the Chinese and the complete Asian
market. The presence of exhibitors is another clear sign that China Brew
has developed into one of the most important industry trade fairs
worldwide. I am certainly not speculating falsely when I maintain that
we will also take part again in two years."
Marylin Chua, Marketing & Communication Director, Sidel Group, shares
the opinion that CBB is on the optimum path to position itself as the
leading trade fair platform for the beverage and liquid food industry on
the Asian market. "We met a good number of customers during the show, of
which several were key decision makers. The Chinese beverage market is
one of the largest and most dynamic and the show is an excellent
platform for us to showcase our innovations and developments. This year,
we presented our integrated packaging solutions offered by our Beijing
manufacturing facility, including the latest range of energy-saving
blowers fully assembled locally. There was strong interest at our stand,
and we are pleased with the overall results."
According to the opinion of Thomas Lehmann, Manager Director at Ziemann
International, the New China International Exhibition Centre (NCIEC) and
the perfect organization made the CBB 2012 into the best that ever took
place and a great success for Ziemann: "We all hope to see the China
Brew will became the major platform not only for our business in China,
but also for Asia as well as for our global strategic approach. ZIEMANN
International would like to congratulate the entire team in China as
well as the MesseMuenchen on this great success."
Armando Pratella, Area Sales Manager, Sacmi, also shared this opinion.
He considers CBB 2012 a great success: "A big success for the 2012
edition of China Brew&Bev, the international showcase for beverage and
liquid food technologies held in Beijing. During the fair, attended by
all the industry’s major international players, Sacmi included, the
foundations were laid for highly important industrial agreements in the
beverage and liquid food industry. A clear, positive signal, then, in
what is still a tough time for the world economy and a period in which
the flow of industrial investment has slowed to a drip.
“Sacmi sees the China Brew&Bev fair as very important,” stated Sacmi’s
Area Sales Manager Armando Pratella, who was also keen to point out that
“a variety of innovative solutions were presented.” New products, the
Area Sales Manager reveals, have been given a warm welcome by the mainly
international clientele and this, he concluded, indicates “the start of
the industry bounce-back.”
Alfred Mostert, Area Sales Manager, Micro Matic S.A., assessed the
course of CBB as extremely satisfactory: "The last years are showing us
that the beer industry in China is really moving forwards. Thanks to
exhibitions like CBB, new and existing contacts are concluded or
extended. It is nice to meet so many national and international high
quality persons from this industry."
Even, Roberto Gualtieri, Marketing Manager, SIPA was with the result of
the show very satisfied: “China Brew & China Bev exhibition has just
ended, and we would like to congratulate with the organizers. We are
satisfied both by the number and the quality of visitors that came to
SIPA booth. Thanks for all the support. See you next editions.“
Helen Bao, Business Development Dept., KROHNE Measurement Instruments
(Shanghai) Co., Ltd, took part in CBB with her company for the first
time: “By checking the quality of our visitors these days, it proved
that we had made right decision. Thanks for providing us such a well
organized and professional platform to show our products, meet new and
existing clients from the beverage industry all in one place and all at
the same time. It’s really worthwhile to join this fair. I wish every
success and popularity to CBB. We are looking forward to the next time."
About the collaboration between drinktec and CBB
In August 2011, Messe M?nchen GmbH (MMG) as organizer of drinktec as
well as its Chinese subsidiary MMI Shanghai signed a collaboration
agreement with Beijing Zhongqing Heli International Exhibition
Corporation (BZHC) as organizer as well as China National United
Equipment Group Corporation (CNUE) as license holder of CBB. drinktec
has signed with its company name as co-organizer of CBB since that time.
The team of drinktec is the contact and contractual partner for all
international exhibitors, i.e., not Chinese exhibitors, for CBB. This
area of responsibility includes acquisition of these exhibitors as well
as advising and supporting them before and during CBB. (cf. drinktec
Press Release No. 7)
The final report about CBB 2012 with exhibitor and visitor figures,
national and international, will be published during the course of
Additional information about CBB:
Additional information about drinktec:
Contact for China Brew China Beverage (CBB)
Tel: (86 10) 66085371/ 66017874
Fax: (86 10) 66018904
E-mail: [email protected]
Contact for MMI Shanghai
Senior Project Manager
Tel. (+86 21) 2020 5508
Fax (+86 21) 2020 5688
E-mail: [email protected]
Contact for drinktec, MesseM?nchen
Messe M?nchen GmbH
drinktec Press Office
Johannes Manger and BenjaminB?ttner
Tel. (+49 89) 949-21482
Fax (+49 89) 949-20689
E-mail: [email protected]sse-muenchen.de/
2 Oct. 2012