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.
Canada. B.C. government says tax break will help small craft breweries expand
Coleman said Monday the Liberal government approved a tax break that allows smaller breweries to expand without immediately paying the same taxes major beer producers face, but it's a move that has caused him a bit of a political hangover.
After all, Coleman said he returned Friday two tickets to the Bahamas, which were offered to a Liberal Party fundraiser by one of the smaller breweries, Pacific Western Brewing Company, that stood to benefit from the tax change.
"We should not have taken those," Coleman said. "No money was accepted."
Coleman said under the old liquor markup policy, a higher tax rate kicked in when a brewery produced 160,000 hectolitres of beer — each hectolitre being 100 litres of beer.
With the new policy, smaller breweries will pay increased taxes on an incremental scale that rises every 5,000 hectolitres sold above 160,000 hectolitres, he said.
The change will help seven B.C. craft breweries to expand and create local jobs, Coleman said.
"Now, a small brewery can look at this and know when they are going to hit certain thresholds of tax and they can make their business decisions on whether it's time to add a faster bottling line or increase their production," Coleman said.
The development of the beer policy resulted in a political wrangle for Coleman, starting on Nov. 14 with the Liquor Distribution Branch, the arm of government that sets liquor policy.
Letters were sent to beer suppliers, informing them of a new markup policy that included a tax rate covering sales from 160,000 hectolitres to 400,000 hectolitres.
But officials in Coleman's office issued a statement last week calling the Nov. 14 letter an inadequate version of the tax policy and said a new one was on the way.
The new policy announced Monday covers beer-tax changes from 160,000 hectolitres to 300,000 hectolitres.
While the new policy was being developed, Coleman's motives came under fire, with some suggesting he was favouring smaller brewers that have donated to the party's coffers and offered gifts at a Coleman party fundraiser.
Coleman said he was then hit by large and small breweries while changing the tax policy, and at one point Prince George's Pacific Western Brewing Company threatened to shut down its operation rather than pay increased taxes.
"That's life, " said Coleman. "I'm a politician, somebody's going to take a shot at me one way or another. I was resisting the smaller brewers and I was resisting the national brewers, so both of them, obviously tried a bit of politics on me. I tried to strike a balance, and I think I did."
Coleman also faced suggestions of political favouritism when it surfaced Pacific Western Brewing's president Kazuko Komatsu donated tickets to the Bahamas worth almost $27,000 for a Liberal fundraising auction in his Langley riding.
But both the large and small beer brewers contribute donations to the B.C. Liberal Party, Elections BC records show.
Records of financial contributions filed with Elections BC show so far this year, Pacific Western Brewing Company made donations amounting to $15,550 _ including a $1,200 personal contribution from Kazuko Komatsu. In 2011, the total was $24,850.
Those contributions dwarf the tallies posted by the larger beer makers: Labatt's donated $750 in each of the last two years, while Molson Coors donated $11,800 in 2011, but only $300 this year.
Sleeman Breweries donated $800 this year, as compared to $346 in 2011, a contribution given for Premier Christy Clark's byelection campaign.
The Beer Store, which is owned by Molson, Labatt and Sleeman, contributed $19,800, including money to the leadership campaigns of Kevin Falcon, George Abbott and Clark. This year, however, the donations were zero.
None of the brewers listed above donated to the NDP.
27 Nov. 2012