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.
Craft brewing reawakens in Japan
The ale contained the elegance that often characterizes ji-biru: Japanese craft beer. Yes, it was an IPA, but it was called Ozeno Yukidoke and came from a region of hills and hot springs known as Gunma Prefecture.
Toki is one of many Washington restaurants that feature one of Japan’s least famous but most exciting gastronomic exports. As ramen joints and the small-plate specialists known as izakayas have proliferated — including, in recent months, U Street’s Izakaya Seki and Taan Noodles in Adams Morgan — so, thankfully, has ji-biru. It is now easier than ever to taste how Japanese brewers are reinterpreting American and European beer styles, adding their own aesthetic of balance and refinement, and sometimes local ingredients including rice and sweet potatoes.
Beer is Japan’s most popular alcoholic beverage, and three brands dominate the market: Asahi, Kirin and Sapporo, all German-inspired lagers introduced in the late 19th century. But small breweries couldn’t exist in Japan until the mid-1990s, when the government did away with legislation that had prohibited them. Even then, the country lacked its own beer traditions, and home brewing remained illegal.
“When ji-biru started, it was at least 50 percent German-style,” says Bryan Baird, an American who founded Japan’s Baird Brewing in 2000 and is one of the country’s most respected craft brewers. Plus, he says, “unlike in the United States, where craft beer was mostly driven by home brewers and people who were in it for the love of it, in Japan it was pretty much corporate from the beginning.”
A few artisanal breweries paved the way for a more vibrant scene, including the Kiuchi Brewery, whose Hitachino Nest beers have become the best-known ji-biru in the United States. Riffs on American pale ales and Belgian styles have become common.
“There are more and more of these breweries that really add a local twist to it,” says Matthias Neidhart, founder of Connecticut-based B. United International, which imports the Hitachino beers. “Bringing in local ingredients, maybe local aging methods, maybe local aging containers and barrels, it’s part of what you have to do, exactly like in the United States.”
Especially widespread are straightforward versions of foreign styles with nuances that many people consider distinctly Japanese.
“Even though they have IPAs and a huge variety of styles, these beers don’t often have the aggressive flavor profiles that you find in a lot of American craft beers,” says Izakaya Seki’s Cizuka Seki, who offers about a dozen varieties.
Colin Sugalski, beverage director at Toki Underground, agrees, pointing out that even Japan’s dark beers aren’t too intense. “While they are big, robust and bold,” he says, “they still have a lighter side.”
To be sure, one aspect of ji-biru really is big and bold: its price. In Washington, restaurants tend to sell 12-ounce bottles for $8 to $12. Not everyone approves, including Daisuke Utagawa, co-owner of the Sushiko restaurants in Georgetown and Chevy Chase and of the forthcoming Penn Quarter izakaya Daikaya.
“We always have to think about the price factor,” he says. “There’s a lot to explore with beer and Japanese cuisine. Does it have to be Japanese beer? I don’t think so.”
Still, drinkers who try ji-biru will be rewarded even if only during special nights out. A good starting point is the widely available Hitachino Nest White Ale, a Belgian-style wheat beer with notes of orange, nutmeg and Riesling-like fruitiness.
Hitachino Nest Red Rice Ale, meanwhile, contains 25 percent rice and is fermented with both sake and ale yeasts, resulting in a hard-to-categorize amber beer that smells like strawberries and tastes like caramel, apples and prunes. The brand’s Espresso Stout is a silky, balanced mixture of coffee, fig and cola flavors.
Other breweries to seek out include Coedo, whose Coedo Beniaka is a spicy sweet potato beer that resembles a dark Belgian ale; Echigo, whose Pilsener-like Koshihikari rice lager contains hints of toasted grain; and Yo-Ho Brewing, whose Yona Yona pale ale bursts with tropical fruit.
Then there’s Baird Brewing’s Kurofune Porter, an elegant mixture of coffee and caramel flavors that is lighter in body than many American dark beers and unusually dry. “The aesthetic in Japan is an aesthetic of simplicity, with waves and waves of complexity within the simplicity,” Bryan Baird says.
He adds, “I don’t think I’d be making beer like this if it weren’t for the influence of Japan.”
27 Nov. 2012