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.
N?rnbergMesse moves into fast lane
- 2012: strongest year in the history of the company
- Management duo presents top figures for revenue and profit
- Largest international involvement ever at exhibition centre
What a year! The N?rnbergMesse Group achieved by far the strongest financial year in the almost 40-year history of the company in 2012: 236 million euros revenue and a profit of 10.1 million euros. These figures are backed by new records for all key exhibition parameters and in all business fields: just under one million square metres of sold space, more exhibitors than ever before, and the largest ever international involvement – both at the N?rnberg venue and at the worldwide events. The N?rnbergMesse Group expects a good 180 million euros revenue for 2013, a weaker year due to event cycles. The current year thus completely meets the expectations.
Record revenue of 236 million euros in the N?rnbergMesse Group for 2012 – that’s another 15 % more than in the previous record year 2010. But not only the revenue has climbed; the profit has also reached a new record level. 10.1 million euros this time – more than ever before. “And this despite a conservative accounting policy,” says Dr. Roland Fleck, CEO of N?rnbergMesse. “This double record for revenue and profit strengthens N?rnbergMesse for the forthcoming phase of further investment in the future.”
Records in the real economy – in making exhibitions
The records in financial management at N?rnbergMesse in 2012 are accompanied by records in the real economy – in “making exhibitions”: “A thoroughly strong year,” confirms Peter Ottmann, CEO of N?rnbergMesse. The key figures for the N?rnbergMesse Group are also up for 2012 (compared with the previous event). For example, the net booked space rose by 5 % (2010: 946,031 square metres, 2012: 990,718 square metres), the number of exhibitors by 2 % (2010: 28,850, 2012: 29,449), and the number of visitors by 1 % (2010: 1,346,356, 2012: 1,356,095). One noticeable aspect is the positive development of the international involvement, which has appreciably increased in proportion (stand space plus 10 %, exhibitors plus 9 %, visitors plus 8 %). The share of international exhibitors is meanwhile 39 % over the whole portfolio at the N?rnberg exhibition centre, and as much as 53 % for the international trade fairs in the own and partner events division at the N?rnberg venue. “The international involvement is no one-way street. We want both aspects: to be successful internationally but also make the events at the N?rnberg exhibition centre more and more international,” says Peter Ottmann.
“The workforce of N?rnbergMesse has played a substantial role in achieving these results,” emphasize Fleck and Ottmann. “Our special thanks go to all staff of the N?rnbergMesse Group, who have achieved these record results through their untiring efforts, hard work and great enthusiasm.” In order to keep up with the growth in Germany and abroad, many new colleagues also joined the company in 2012, so that at the end of last year the N?rnbergMesse Group had 545 employees worldwide, over 370 of them at the N?rnberg location.
6th place in Germany for the first time
“N?rnbergMesse has occupied a respectable seventh place in the list of top exhibition centres in Germany for the last one and a half decades. Now we have actually advanced to sixth place for the first time – at least in 2012 – and even to 4th place as far as profit is concerned,” reports Peter Ottmann. Dr. Roland Fleck points out that N?rnberg as the 15th largest city in Germany and with this exhibition ranking not only plays in the league of major exhibition centres, but also of large German metropolises. This applies at international level too. With its performance in 2012, N?rnbergMesse has come a little closer to its strategic goal of joining the top ten exhibition companies in the world. It has at least made it to the world’s “Top 15” in 2012, a particularly strong year for exhibitions. “This is a message that should also reach the people of N?rnberg: N?rnberg is an exhibition and congress city – and one of the really big names!”
A billion euros for the Metropolitan Region
The N?rnberg exhibition organizers are also especially pleased about something else, namely that they have succeeded in bringing other events to N?rnberg in addition to those permanently established in the calendar. “The extent to which we have succeeded in bringing congresses and corporate events to N?rnberg in 2012 takes on a new dimension,” says CEO Dr. Roland Fleck. “This has not only been good for us, but the Metropolitan Region has profited too. Especially large congresses have an extremely positive impact on indirect profitability, that is, what is spent in the city and region in addition to the revenue achieved in the exhibition and convention centre itself. All the events of N?rnbergMesse together provide over a billion euros of economic power in the Metropolitan Region.
2013: DFB National Conference in N?rnberg for the first time
In line with the cycle of events, revenue in 2013 is expected to reach more than 180 million euros. This would be another all-time high for revenue in an odd year.
This year there are a number of events that have taken place or are due to take place for the first time in N?rnberg. These are headed by the DFB National Conference, which will be held in N?rnberg for the first time in the history of German football, or the Automotive Engineering Expo (AEE), an exhibition on car body manufacturing, painting and assembly. The programme for the second half of the year includes the Developer Week, one of the biggest independent Internet developer conferences in Europe, the European Microwave Week and gat/wat, Germany’s largest exhibition and congress for gas and water. “Here we have constantly succeeded in exploiting our great strength, the congenial combination of exhibition and convention areas,” says Dr. Roland Fleck. As the CEO emphasizes, the success of N?rnbergConvention is a visible example of this: “The umbrella brand has presented the convention city of N?rnberg nationally and internationally for just under two years and is obviously making progress, as the successful acquisitions show”.
New hall 3A on schedule
The new hall 3A will make this play area even larger – literally, as Spielwarenmesse (toy fair) in February 2014 will be the first user of the hall, which will be just finished by then. “The topping out ceremony is in July, so we are completely on schedule,” establishes Peter Ottmann, and he and Dr. Roland Fleck are both pleased that they can not only offer another 9,000 square metres to make a total display area of 170,000 square metres, but also set a sensible and extremely attractive urban planning trend with the new hall in the southeast of the exhibition and convention grounds. “The dimensions and design features of the hall are already clearly visible,” says Dr. Fleck, who, like Ottmann, regularly drops in at the building site.
Olympic Sports Centre, opera houses and museums: The London-based Zaha Hadid Architects, which until now have attracted international attention with much-admired designs mainly in the fields of culture and sport, are responsible for the design of the hall. Hall 3A is now the world’s first exhibition hall built to a design by Zaha Hadid.
About the N?rnbergMesse Group
N?rnbergMesse is one of the 20 largest exhibition companies in the world and among the Top Ten in Europe.The portfolio covers some 120 national and international exhibitions and congresses and approx. 40 sponsored pavilions at the N?rnberg location and worldwide.Every year, around 30,000 exhibitors (international share 39 %) and up to 1.4 million visitors (international share of trade visitors 22 %) participate in the own, partner and guest events of the N?rnbergMesse Group, which is present with subsidiaries in China, North America, Brazil, Italy and now in India too.The group also has a network of approx. 50 representatives operating in some 100 countries.
18 Jul. 2013