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.
KHS Group: very good incoming orders and successful development in business year 2013
• Position as innovative trendsetter clearly underlined.
The KHS Group has been able to considerably strengthen its position in an extremely competitive and dynamic market environment. With a turnover of €1,017.8 million KHS was 3.9% up on its figure for the previous year and exceeded the million-euro mark for the first time. Incoming orders rose by 11.3% last year, clocking up a total of €1,131.5 million. Profit before taxes, which in 2012 was slightly in the red, increased to €10.6 million. Compared to 2011, this is an improvement of over €90 million.
In 2103 KHS realized 32.8% of sales in Europe, 16.5% in the Middle East and Africa, 21.9% in the Asia/Pacific region and 28.8% in the USA and Latin America. KHS is the partner of choice for both big concerns and small and medium-sized enterprises, wherever they are in the world.
Innovation as a market force
On the markets KHS chiefly scored with its energy and resource-saving innovations for the sustainable economic success of its clients. Labeling and container dressing and new filling and packaging systems were the prime areas of development in 2013. At the leading international drinktec 2013 trade show KHS presented a spectacular array of new products, among them technology for the direct printing of PET bottles and the innovative Nature MultiPack packaging system, where PET bottles are turned into multipacks merely by the application of a special adhesive. These were two really disruptive innovations, as both systems enable significant savings in packaging material to be made, these marketed under the single umbrella of NMP Systems GmbH. With its new rotary aseptic machine KHS also launched a safe and reliable system for the bottling of sensitive beverages in the high-capacity range. Monitoring systems, such as the MES manufacturing execution system, were also further developed and the app-based KHS everywhere info system was introduced.
Consistent customer orientation
The conversions business was one of the mainstays of KHS Service in 2013, with no less than 947 conversions commissioned – a plus of 34.7% compared to 2012. Innovative systems like AirbackPlus for the cost-effective and sustainable manufacture of PET bottles also had an important role to play here. KHS also released a number of new service concepts – for example detailed consultancy prior to investment and service packages tailored to specific customer needs across the entire life cycle of their lines and machines. These are further important generators of business. KHS' vision, which the company is consistently pursuing, is to be first choice in technology and service.
Trusted partner worldwide
One of the special projects for 2013 was the order from Unicer Bebidas, a beverage manufacturer and the biggest beer producer in Portugal. KHS supplied the company with two turnkey glass lines, three glass bottle fillers, three keg washers and rackers and another pasteurizer. In 2013 the Carlsberg Group also opted for no less than three PET lines, for instance. Coca-Cola Enterprises, to date primarily a consistent partner for complete glass and canning lines, invested in a KHS PET line for the first time. Also worth mentioning are the many orders which came from the booming craft brewery scene in the USA. For example, last year Lakefront Brewery took delivery of the newly launched Innofill Glass Micro glass bottler, Oskar Blues Brewery invested in its second KHS canner and the traditional brewery D.G. Yuengling & Son again went for a KHS kegging system.
KHS' endeavor to act as an innovative trendsetter in the industry – with a clear focus on its customers – is thus mirrored by its successful international project business and very good order situation.
For the fiscal year 2014 the KHS Executive Management Board believes that sales and profits will again be well above the previous year’s level.
Prof. Dr.-Ing. Matthias Niemeyer, CEO of KHS GmbH, says, "Our high capacity utilization, lively service business and the success of the Fit4Future program form the foundations of this prognosis. We believe that a growth of 4% for 2014 is quite realistic."
KHS GmbH is one of the leading manufacturers of filling and packaging systems for the beverage, food and non-food industries. Headquartered in Dortmund, Germany, the company has over 4,500 employees worldwide.
KHS GmbH is a wholly owned subsidiary of Salzgitter AG. With around 25,000 employees throughout the globe the German steel and technology group achieved a turnover of over €9 billion in the business year 2013. Within the Salzgitter Group the KHS Group and two other special machine manufacturers make up the technology division and are part of the core business of the MDAX-listed corporation.
1 Jul. 2014