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.
USA. Oskar Blues Continues Growth, Outpaces Industry
Oskar Blues’ continued growth is a result of $4+ million in improvements to its Longmont, CO facility in 2012. The expansion included 14 additional 200-barrel fermenters and two 400-barrel bright beer tanks which allowed the brewery to go from 59,000 barrels of beer in 2011 to 85,750 BBLs in 2012. In addition, the Tasty Weasel taproom (Best Taproom: 5280 & Westword Magazines) in Longmont, CO underwent extensive renovations earlier in 2012 resulting in a new patio and additional production space.
The increased capacity catapulted Oskar Blues to one of the three “Biggest Momentum Gainers” on the Brewers Association annual Top 50 Craft Brewers List this past spring and grabbed them the Denver Business Journal’s “Fastest Growing Private Companies” in August. It also allowed Oskar Blues to expand distribution to new markets for the first time in four years. The markets: Chicago, Ohio, Northern Kentucky and founder Dale Katechis’ home state of Alabama each established the largest craft beer launch in territory history topped with 14,000+ case equivalents during the first week in Ohio.
The Colorado brewery also installed a new canning line capable of filling 300 cans per minute. This allowed the company to introduce 16oz cans of Deviant Dale’s IPA and G’Knight Imperial Red IPA while being the first American brewery to offer beer drinkers a 19.2oz. Imperial Pint can. Oskar Blues celebrated the 10 year CANiversary of Dale’s Pale Ale by launching the original craft beer in-a-can in the 19.2 oz. Imperial Pint can package during this year’s Great American Beer Festival. The package is available across the country for 2013.
In addition, Oskar Blues became the first craft brewer to introduce Ball Corporation’s 16oz. Alumi-tek resealable can this year at the Craft Brewers Conference by debuting “CHAKA Belgian-Style Ale”, a CANlaboration with Sun King Brewery from Indianapolis. Since that debut, they have used the Alumi-tek can for another CANlaboration with Sun King, a hoppy brown ale called “The Deuce”. They are also canning and distributing their own B.Stiff and Sons Old Fashioned Root Beer in the innovative package.
Oskar Blues keeps employees healthy with an “In the Core” workout program 3 times a week with a personal trainer, massage twice a week and Yoga once a week. The outdoor centric company also hosts a running club and group bike rides throughout the year. In 2012, Oskar Blues instituted a 6% matching 401K program and provided employees 100% health care coverage, offerings that earned them the Denver Post “Top Workplaces Award”.
The accomplishments of 2012 became a springboard for 2013 when, in December, Oskar Blues began brewing at its new brewery and taproom in Brevard, NC. The brewery plans to include a separate restaurant and live music venue in the small town as well. The addition of the 30,000 sq. foot Brevard brewery will expand overall brewing capacity to nearly 130,000 barrels in 2013 and allow the brewery to enter additional markets.
“We continue to have as much fun as we CAN to enjoy this ride” said Katechis. “I am proud of our team as we celebrated the 10th anniversary of Dale’s Pale Ale and we look to include Pisgah, NC singletrack as part of the Oskar Blues backyard.” The fun includes two award winning Colorado restaurant locations (Grill & Brew, Home Made Liquids & Solids), Bonewagon food truck, Hops & Heifers Farm, REEB Cycles www.reebcycles.com (Outside Magazine’s Top 9 Mountain Bikes of Spring 2012) and the upcoming March opening of CHUBurgerwww.CHUBurger.com in Longmont, CO.
22 Jan. 2013