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.
Last year, Compa??a Cervecera Spent 2.4 Million Euros in Actions Aimed to Promote Sustainable Development
- This investment represents 13.4% of its operating profit and emphasises its involvement in environmental, social and economic matters
- Managing director Mark Tindall highlights sustainable development as an integral part of the way the company operates in all its activities
Canary Islands, January 28, 2013. - Last year, Compa??a Cervecera de Canarias spent 2.4 million euros, 13.4% of its operating profit, on actions aimed at promoting sustainable development, as reflected in its last report for last year.
This 2012 Sustainable Development Report summarises the main sustainability developments and evaluates the various actions undertaken in environmental, social and economic matters, while including a detailed description of the goals for the following year in an exercise of commitment and transparency.
The document is a testament of the company’s philosophy since, as the managing director of Compa??a Cervecera Mark Tindall says, “sustainable development is an integral part of the way the company operates”. In this regard, he states, there is an emphasis on the efficient use of natural resources and on promoting economic growth and social development.
Towards this goal, he added, the company has invested in the factories in the past year in order to guarantee the production of the highest quality beer, and innovation for the satisfaction of both customers and consumers. There have also been great efforts in training and workforce development, and in the company’s compromise with the Canarian society’s well-being. All this, he added, is “aiming at being a responsible company, compromised with the community around it”.
Independent studies indicate that the company’s activities are directly or indirectly responsible for about 7,000 jobs, and it contributes an added value of 182 million euros to the economy.
The report also mentions the company’s contribution to other sectors that are not directly related to the brewery sector, such as farming and cattle breeding, non-profit organisations and cultural and sports sectors.
In line with its sustainable development policy, Compa??a Cervecera continues to emphasise the promotion of business development in the value chain by influencing the use of local suppliers and encouraging the economic development of the Islands. In this regard, it is worth noting the use of 930 providers, of which 619 were local.
Among the actions taken in the past year, the commitment for the efficient use of natural resources stands out, resulting in a 9% reduction in the amount of water used for beer production and a 4% reduction in energy use, thanks to various initiatives for improving measurement and control.
Regarding CO2 emissions due to fuel consumption, Compa??a Cervecera achieved a 6% reduction as a result of a set of actions taken to reduce energy use up to 25% more by 2020.
Among Compa??a Cervecera’s goals in the area of sustainability is bottle and container reuse. Last year the company sold 59% of its products in reusable containers, a much higher percentage than the national average, which is 11 points below.
Furthermore, Compa??a Cervecera also has a policy of waste recovery, mainly organic. 13,693 tons of bagasse, yeast and malt powder went to 176 farmers and cattle breeders to be used as fertiliser and animal feed. Also, in spite of limitations in the Canary Islands on recycling certain residues, recycling was 97%.
Action in the community
Community development through social investment is another priority for the company. During the past year there were actions carried out with particular impact on the Islands, in areas such as tourism, rural and landscape development, university research, sports and the development of certain sectors particularly affected by the economic situation.
One of the achievements in this area focused on increasing involvement with various municipalities and private institutions in the Islands, in order to start enhancement and restoration programmes.
There was also an increase in donations to several non-profit organisations dedicated to the integration of disadvantaged groups. The company bet on the training of young Canarians through internship programmes and supported the promotion of culture and sports in the Canary Islands.
About Compa??a Cervecera de Canarias
Compa??a Cervecera is one of the main beer producers nationally and one of the main drivers of economic and social development in the Canary Islands: it directly or indirectly promotes the creation of 7,000 jobs, is a shareholder of several Canarian industrial companies and gives priority to local suppliers to carry on its production activities. The company, part of international group SABMiller, has among its shareholders more than 300 Canarian entrepreneurs that make up about 30% of the total and are represented by two members on the Board of Directors.
Compa??a Cervecera produces its own beer brands Dorada and Tropical, and under licence, Carlsberg; it distributes international brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, Guinness and Kilkenny. It also has other beverages such as natural beverage Appletiser and energy drink Red Bull.
30 Jan. 2013