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.
Would some of the best selling beers be as global a success if they were advertised less?
One brewery that I want to look at is Guinness, a brand that is recognised worldwide.
In the early days of Guinness there was no advertising used, people would find out about the product through word of mouth. However, sales began to fall in Guinness by the 1930’s so they decided to try actively promoting the great product they had on offer.
Now most recognisably Guinness is known for its harp logo, this was always a brand logo for Guinness and was, I suppose, where the advertising began, however the place where I want to start is with advertisements that were used in the 1930s to 40s.
In this period Guinness decided to promote it’s apparent health benefits.
Slogans like “Guinness for strength” and “Guinness is Good for you” are only to name a couple, but the angle was that drinking Guinness in some way improved your health. This worked wonders and sales started to pick up rapidly.
The iconic posters designed to promote these new slogans always contained an animal of some kind, be it a kangaroo, an ostrich, or most famously a Toucan. The toucan became a huge figure of the Guinness brand and this was originally designed by Dorothy L Sayers.
The advertising of Guinness continued like this for many years up until the 1970’s and 80’s. This is when television advertising came in and for me is one of the most successful things about the Guinness brand. Their adverts are always creative and have been something that I have always loved Guinness for, not to mention the amount this continues to help with Guinness sales figures.
There have been so many Guinness adverts over the years from the anticipation campaign with Joe McKinney’s dancing to the “Dot” advert, through to the Surfer in 1999, which looks at a surfer riding some waves while he is being photographed from the shore line. This advert was highly regarded and named best TV commercial of all time.
For me one of the best Guinness adverts has to be NoitulovE (“evolution” backwards). This featured a man having a drink of Guinness and then the advert starts to run in reverse with a de-evolution going on, finishing up with a mud skipper taking a sip from some dirty water and expressing its disgust.
This was such a hit that there were spin offs done for Guinness extra cold that featured the mud skippers tongue being frozen in ice. This also brought about one of the best tag lines for Guinness in my eyes “Good things come to those who wait”. This was just a brilliant advert and made me want to go out there and buy some Guinness.
The relentless advertising campaigns of Guinness have really helped to show how successful a brand can be just by using good adverting. This is evident in the fact we now celebrate a national Guinness day “Arthurs Day” on the 22nd of September and raise a pint to Arthur at 17:59 the year that Guinness was first brewed.
Miller came up with an advertising slogan of “It’s Miller Time”.
In years past I would never have heard of Miller. It wouldn’t have been a beer that I would have thought of.
But “Miller Time” brought that mystery element and sense of community to drinking Miller. Their advert plays on the fact that everyone is to come together on a Friday Night and join in drinking a Miller and celebrate “Miller Time“.
I think this is also a very powerful advert and another example of how a beer that wasn’t that well known to me, grabbed my attention with its powerful advertising. This is a perfect example of how a company can use advertising to sell a beer.
Miller was founded in 1855 by Frederick Miller when he bought a small brewery by the name of the Plank-Road Brewery. Over the years Miller changed hands a few times and developed many products, one of the main products being its Miller Genuine Draft.
Originally this beer was marketed as Miller High Life Genuine Draft. But this proved to be unsuccessful, so the name was changed to just Miller Genuine Draft. The sales of Miller dropped by 51% between the years 2005 – 2010.
Until we come to the advertising of “Miller Time”, which has propelled the beer back into a recognised brand.
This to me shows just how the power of good advertising can help propel beers sales.
Small craft breweries, to me, show how beer sales could increase if the right advertising is used. The publicising of small craft breweries is essential in order for their beer sales to excel. A lot of craft beer is sold to craft beer fans and is publicised by word of mouth. If these breweries had the money that the bigger breweries have, then I really believe that beer sales of these craft beers would rise dramatically.
I believe that Guinness is a perfect example of how important an advertising campaign can be when it comes to beer sales and promoting a company. There has always been a slight taboo around advertising alcohol as you cannot be seen to be promoting people to drink, hence why the “Drink Responsibly” campaign came in, however Guinness promotes their product in such an effective manner that it is one of the most popular beers not only here in Ireland but also around the world.
The main question in this article is how much advertising needs to go into a product in order to make it successful and does a product only become successful due to its advertising?
I strongly believe that you may have the best beer in the world, but if no one knows about it then it’s not going to be a huge success until it’s advertised. The reason I have picked Guinness and Miller as examples, is to show how a brewery can go from a producer of a beer that wasn’t selling well and was being advertised by word of mouth to a worldwide company that distributes its beer globally and is a household name.
It would be great to hear from you all and your experiences of beer advertising over the years, your favourite adverts and posters.
30 Nov. 2012