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.
US. Whipping Up a Brew That Is True to You
Joe Verzi, the company’s owner, poured the All Centennial Hop IPA from a plastic fermenter into a five-gallon stainless steel soda keg.
Three weeks earlier, under Mr. Verzi’s supervision, the Patafios had steeped Munich and caramel malts in water, heated it, added malt extract and then added hops. After boiling the mixture for an hour and adding more hops, they chilled the resulting wort and began the fermentation process with the introduction of yeast. They did the work in the shop’s so-called brew-on-premise, a modern workroom resembling a kitchenette and outfitted with brewing equipment.
They were taking their ale home, but for larger groups there is also another option, as Mrs. Patafio, 54, of Ringwood, pointed out.
“You can have a home-brew party here — it’s like adult Chuck E. Cheese’s,” she said.
As novice brewers, they had plenty of guidance.
“I help them as much or as little as they’d like,” Mr. Verzi, 29, said of his customers. He turned his hobby of home brewing into his profession a year ago when he opened this specialty shop. Besides having beermaking equipment for customers’ use, he sells kits, grains, kettles and other necessities for making beer (as well as wine, cider and mead).
The brew-on-premise experience — which costs $140 to $160 for a group of up to four people making five gallons — is as much social as it is educational. (Larger groups can be accommodated.)
The shop has a pubby atmosphere, with a high-top table where customers can sit and eat food that they bring in or order out from a book of menus. There’s a tap, too, that dispenses samples of various beers for customers to sip.
Shops like Cask and Kettle are capitalizing on the growing trend of home brewing. (Even the White House has been making beer.) “It’s definitely on the upswing,” said Jo Ellen Ford, 54, an owner of the Brewer’s Apprentice, a family-run shop in Freehold, which also has a space where customers can make their own beer. The company opened in 1996 in a 3,000-square-foot space, then moved to a 5,000-square-foot location two years ago.
According to the American Homebrewers Association, an organization based in Boulder, Colo., that promotes home brewing, the number of home-brewing shops has increased nationwide, as has revenue at these stores, up 24 percent in 2011 over the previous year. In New Jersey, more shops catering to home brewers have opened recently, and older ones have expanded.
“It’s not about consuming a lot,” Ms. Ford said. Home brewers are more interested in appreciating the flavors of their products, she said. “Also, there’s the challenge of ‘How do I do this?’ ”
Scott Begraft, 40, who opened North Jersey Homebrew in Sparta in 2011, said homemade beer “tends to be better than what you can get commercially.”
Mr. Begraft’s shop does not have a place for customers to make their own beer, but he stocks the ingredients they need for home brewing: fresh yeast, flavorings, sugars and raw honey, among other ingredients.
When Mr. Begraft began home brewing a little over two years ago, he turned to the Internet for ingredients to make the Belgian- and blond-style beers he is fond of. “There was nothing around here,” he said. “If you broke something or needed something, you had to wait at least over a week and pay shipping fees.”
The home-brew stores cater to customers who want to talk shop.
“Every day we have somebody come in and we explain the process,” Mr. Begraft said. He can also point them to local clubs in Sussex County, like Sussex County United Brewers and Alchemists, where they can meet other home brewers.
Mr. Begraft, along with his colleague Mike Pippitt, often gives brewing demonstrations. On Nov. 3, when the American Homebrewers Association sponsors its national Learn to Homebrew Day, his shop and many others, as well as some home-brew clubs, will hold events.
For home brewers like Bobby Mierzejwski, the opening of more shops catering to the hobby is a welcome trend.
Mr. Mierzejwski, 36, of Piscataway, said that when he first started home brewing about six years ago, he bought most of his materials online or made them (something he still does; he also sells equipment he makes on his Web site, brewhardware.com). But now Mr. Mierzejwski, who is the president of the Woodbridge Homebrewers Ale and Lager Enthusiast Society, can go to shops nearby like love2brew, a warehouse-style store that opened last year in North Brunswick, for supplies. He often runs into other club members there, he said.
While love2brew sells much of its merchandise online, the 2,500-square-foot store, with shelves of supplies and materials, has its homey aspects. The owners, Ron Witkowski and Mark Spezio, who started out as home brewers, bring a personal touch to the business.
“All of our kits have instructions that we write ourselves,” said Mr. Witkowski, 28, of North Brunswick, adding that they write the recipes, too, for their own concoctions, like a crisp and lemony Sorachi saison and a malty-sweet vanilla cream ale, among dozens of others.
On the shop’s Web site, they post content from a variety of contributors on topics like pairing beer with food and how to brew with fruit. At the front of the shop, behind the checkout counter, bottles of beers made by customers are displayed. They are also building a brew-on-premise center, which they hope to open by the end of November.
Turning their hobby into a business has not dimmed the partners’ enthusiasm for making their own beer at home. “We brewed 40 gallons this month,” Mr. Witkowski said, for Mr. Spezio’s coming wedding.
18 Jan. 2013