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.
Closing Report CBB: Co-organizer of drinktec gives a strong boost to China Brew & China Beverage
CBB?s reputation grew once again with the 2012 event, a fact clearly reflected in the visitor survey initiated by MMI Shanghai. Of the 424 visitors surveyed, almost all of them, close on 100%, said they would recommend CBB to business partners. 97% said that the next edition of CBB, in two years' time, is now a firm date in their diaries; 95% rated the 2012 event as "good to excellent".
As such CBB is right on track to becoming the Number 1 trade show for the beverage and liquid food industry for the East Asian market. Wang Xin General Manager, Beijing Zhongqing Heli Machinery Equipment Co. Ltd, praised the intercultural interplay between the participating organizers from China and Germany: "CBB 2012 is a great success. We had plenty of positive feedback from the trade visitors and also from the Chinese and international exhibitors. This success is the outcome of the cooperation between the China National United Equipment Group Corp. and the Beijing Zhongqing Heli International Exhibition Co. Ltd on the one hand and Messe M?nchen and its subsidiary MMI Shanghai on the other. I would like to convey my thanks for the support from the industry and from our friends and colleagues and for the hard work that the entire CBB team has put in."
Dr. Reinhard Pfeiffer, Managing Director of Messe M?nchen International, sees CBB 2012 as the start of a long-term strategic cooperation. "This CBB has laid the foundation stone for a Munich-Beijing axis. Every four years, drinktec in Munich brings together the entire beverage and liquid food industry from the whole world, while CBB serves the most important market in Asia over a two-year cycle. This grouping strengthens the two trade fair organizations but above all it offers benefits to our customers, the exhibitors and the visitors. Our common aim is to continue to reinforce and extend this axis. The contract with our Chinese partners runs until 2024. This gives us plenty of time yet and a lot of scope for further growth."
Despite all the cultural differences and reservations, the organizers from Germany and China have never lost sight of their aim, according to Petra Westphal, Exhibition Group Director at Messe M?nchen with responsibility for drinktec. She says: "In just twelve months two cultures and two trade fair organizers have grown together and have achieved something tremendous. This can only happen if all concerned pull together, are ready to compromise and respect one another. CBB 2012 is a model of successful cultural collaboration."
Volker Kronseder, Chairman of the Board of Krones AG and President of the drinktec Advisory Board, and as such a representative of the exhibiting industry, also praised the collaboration between drinktec and CBB: "This sets the standard for our sector, especially in such an important market as China. It is important for the international exhibitors that the cooperation with drinktec assures a certain level of quality, including as regards service and infrastructure. In this respect there have already been noticeable improvements at CBB 2012."
In the view of Richard Clemens, Managing Director of the Food and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen) affiliated to the VDMA (Germany’s Engineering Federation), CBB has continued its record of success by moving to the new exhibition center, the NCIEC, and has set new standards. "By cooperating with Messe M?nchen, CBB now has a strong partner on its side for further internationalization and professionalization. It has established itself as the most important platform for China and is right on track to become the Number 1 sector hub for Southeast Asia.’
In August 2011 Messe M?nchen GmbH (MMG), as the organizer of drinktec, and its Chinese subsidiary MMI Shanghai, signed a treaty of cooperation with the Beijing Zhongqing Heli International Exhibition Corporation (BZHC), as the organizer, and China National United Equipment Group Corporation (CNUE), as the license-holder of CBB. Since then, drinktec has been a co-organizer of CBB. The drinktec team is the contact and contractual partner for all the international, i.e. non-Chinese exhibitors at CBB. The area of responsibility comprises the acquisition of these exhibitors and giving them advice and support before and during CBB (see also the drinktec press release no. 7).
Further information on CBB:
Further information on drinktec:
Contact China Brew & China Beverage (CBB)
Tel: (86 10) 66085371/ 66017874
Fax: (86 10) 66018904
e-mail: [email protected]
Contact MMI Shanghai
Tel. (+86 21) 2020 5500
Fax (+86 21) 2020 5666
e-mail: [email protected]
Contact drinktec, Messe M?nchen
Messe M?nchen GmbH
drinktec Press Office
Johannes Manger and Benjamin B?ttner
Tel. (+49 89) 949-21482
Fax (+49 89) 949-20689
e-mail: [email protected]/
2 Nov. 2012