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.
Curtain up: The technology trends on drinktec 2013
Process Technology for Beer
The use of raw materials will be a central theme of drinktec 2013 in two respects. This prediction comes from Professor Martin Krottenthaler from the Weihenstephan Triesdorf University. He says, "Here, in the global market, the first matter of interest is the highest possible yield. The second is that the raw materials will become more variable. The central question is: where do I get the starch for brewing at low cost? And it doesn’t have to come from traditional raw materials, if, perhaps, logistical costs are rising, or the competition is growing, or because of the arable areas. This directly influences the machine technology needed." Professor Krottenthaler sees human resources as another strategic corporate goal. "Employees with dual training, meaning they are equally competent in theory and practice, will become an important factor for the future, as this is the only way to operate the complex production units optimally with the lowest possible input from human resources."
Process Technology for Milk
Hygiene is another important watchword in the dairy business. According to Knuth Lorenzen, the President of the European Hygienic Engineering & Design Group (EHEDG), consistent use of all the suggestions from Hygienic Design can considerably reduce CIP times. The motto is ‘easy to clean’, because shorter cleaning times greatly increase the availability of the plant. In all these areas, drinktec 2013 offers visitors from the dairy industry many exciting state-of-the-art technical innovations. Here, besides offering information about the latest technologies for manufacture, filling and packing, drinktec also has raw materials and logistical solutions on show. Rounding off the portfolio are the topics of beverage marketing and packaging design, which are also important for the dairy industry.
Process Technology for Wine
Now decanters can also successfully replace the press, the dominant method of juice extraction since the days of the Romans, as Robert Stangl, Regional Manager Food Technology at the drinktec exhibitor Alfa Laval, explains: "Nowadays decanters not only handle must clarification and yeast separation, these machines can also be used to extract must or juice from the grapes. Scroll-type centrifuges have already more than proven their effectiveness as compared to conventional presses. The more constant values, the easier operation and the drier residues all lead to greater efficiency. For vintners this means a higher yield with precisely calculable costs. Several well known institutes in Germany and abroad can confirm these results. For this reason Alfa Laval will probably be exhibiting a decanter of this type at drinktec 2013."
Cross-functional process technology
GMP, short for "good manufacturing practice", is a comprehensive quality assurance system that is gaining ground around the world. Just how it works is described by Heinz-Jьrgen Kroner, Managing Director of the drinktec exhibitor Pentair Sьdmo: "For us system designers, GMP basically presents two challenges: Firstly, as the competitive environment gets ever tougher, investment and operating costs should be as low as possible. Secondly, the input required for quality, performance, safety and documentation is constantly rising. The automobile industry is showing how to master this twin challenge. They build a wide range of models and brands on one standardized vehicle platform. The manufacturer is therefore deliberately moving away from individual production to a module-based system. This trend will be evident in many areas at the next drinktec."
In particular when lines are changed often, these machines boost cost-efficiency tremendously, thanks to plug & label units. Markus Mьller, Heuft Systemtechnik, explains: "The ever increasing diversity in beverages packaging and packaging styles is demanding compact, flexible solutions that are highly automated, high-precision solutions for applying different types of label and for rapid change-overs that save on personnel and material costs. There is a trend towards camera-based, servo-controlled processes for millimeter-precise fine alignment of bottles before label application and integrated inspection modules to check quality even while the containers are still in the machine. Visitors to drinktec 2013 can look forward to a chance to review innovative technologies not just in these areas."
Innovative filling technology
Prof. Dr.-Ing. Matthias Niemeyer, Chairman of KHS GmbH, sums up the trends in filling technology: "At drinktec 2013 we will again see a clear orientation towards meeting customer wishes and, allied to this, a maximization of benefit. In this context the aspect of sustainability plays a key role. At the same time modular-designed filling technology will also be a central theme. This involves increased filling quality, better system availability and lower costs for maintenance, energy water and cleaning agents – advantages that are generated also by consistent application of hygienic design."
For Holger Kahlert , Vice President Filling Technology at Krones AG, Neutraubling, the general trend in aseptic filling is towards a significant reduction in cleaning and sterilization media: "The plant operators want to move away from the classic wet-aseptic with peracetic acid or dry sterilization with hydrogen peroxide towards chemical-free systems, for example using irradiation. 'No water, no life': if the isolator always remains dry and no chemicals are used, then micro-organisms have no nutrient to feed on, and no contamination can arise."
Process automation and IT
This trend towards tailor-made automated solutions for all sizes of company, i.e. for global players as well as for SMEs, will continue at drinktec 2013. A second main focus, according to Gunther Walden, Head of Food & Beverage at the Siemens Division Industry Automation, lies in process optimization: "The focus will be on solutions which will help companies in the beverages industry increase their productivity. These offers are aimed at reducing the total cost of ownership (TCO) for the operators, while maintaining high product quality and providing greater flexibility. These include products and solutions to increase energy-efficiency in production."
Sweetening, Color, Flavor
One absolute must-visit for marketing and technology divisions of brewing and soft drinks groups and SMEs, dairy producers and liquid foods manufacturers, is the “Special Area New Beverage Concepts” in Hall B1. At this location manufacturers will be presenting and explaining their new sweetening, coloring and flavoring strategies. BENEO, for example, a leading manufacturer of functional ingredients, will be demonstrating ideas for a better balance in energy-boosting products: “Consumers are increasingly focusing on drinks concepts that release a steady supply of energy, avoiding the so-called ‘boost and crash’ effect. It is ingredients like ginseng or Palatinose™ (Isomaltulose) that rate highest on this criterion, as they are natural products that also offer nutritional benefits,” explains Jens Bцhm, Marketing Manager for BENEO.
According to Richard Clemens, Managing Director of the conceptual sponsor of drinktec, the Food and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen), affiliated in the VDMA (Germanyґs engineering federation), hygienically designed technology optimized for production processes offers more than just microbiological safety: "Product safety, i.e. protection of the consumer, is of course the main focus. But the hygienic design of process, filling and packaging systems also offers benefits in terms of efficiency: easy-to-clean surfaces and components will save on water, cleaning agents and energy. The total time spent on cleaning is shorter. And that means longer production times and increased efficiency of the systems technology."
Water treatment and water management
Careful, i.e. cost-efficient use of the resource of water will be a common theme covered right through the exhibition halls at drinktec 2013, in particular at the booths of the exhibitors in Halls A3, A4 and B2. Professor Dr. Stefan Schildbach from the University of Fulda, Dept. of Food Technology, describes the current situation as follows: "Sustainability most certainly also affects the subject of water processing. Savings that only a few years ago were considered too small and not cost-effective to implement, are now becoming ever more interesting. I am thinking here, for example, of the processing of water from filter backwash and of further increasing the yield in reverse osmosis plants. Also, intelligent control and monitoring strategies will start to become more important."
Material handling engineering and Intralogistics
drinktec exhibitors have long since geared up to the changing warehouse environment and produced corresponding solutions, as illustrated by Andreas Oy, Sales Director at SSI Schдfer Noell GmbH: "At present there is increasing demand in the beverages sector for modular and scalable concepts which the manufacturers can use for optimum space utilization, for significantly increasing availability, deliverability and service quality, and for higher throughput. One current example is a fully automated compact channel warehouse with a Lift&Run system, orbiter shuttles and intelligent materials handling control from the warehouse management system for Gerolsteiner beverages manufacturer."
Final packaging and palletizing systems
"Cost-efficiency, flexibility and sustainability are the key benchmarks for future-oriented final-packaging and palletizing systems," says Dipl. Ing. Heiner Schaefer, Managing Director of Schaefer Fцrderanlagen- und Maschinenbau GmbH. "Reducing the material used on beverage containers and minimizing the secondary packaging presents a big challenge to the way beverage manufacturers work. Continuous three-shift operation with 8000 and more production hours per year, combined with extended maintenance intervals are the key features of the new machinery concepts. Packaging innovations at ever shorter intervals demand a great degree of flexibility in terms of machinery and plant. Off-line solutions are particularly popular for increasing the automation of packaging, sorting and mixing operations. Energy-optimized drive systems and plant concepts also make their contribution towards sustainability. At drinktec 2013 visitors and customers from all over the world will be seeing solutions on these trends and challenges."
1 Jul. 2013