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.
Closing Report 2014: Increase of 37 Percent – drink technology India and International PackTech India Set Outstanding Visitor Record
drink technology India and International PackTech India already took place for the third time together under one roof. A total of 230 exhibitors presented their products on the three trade fair days; 119 of them exhibited at drink technology India, which experienced an increase of approx. 20 percent in its number of exhibitors and occupied net area. The area of food processing was represented at drink technology India for the first time and is to be expanded further in the future at both shows.
The trade fair duo again confirmed its reputation as a business platform that provides customised solutions for the India market. A striking feature this time was that the stand presentations of the exhibitors were in part substantially more extravagant than in the past years. The picture on the trade fair grounds was characterised by intensive technical discussions at trade fair stands with lots of visitors. The crowd of visitors was so large, above all in the afternoon, that is was difficult to pass through in trade fair hall 1 of Bombay Exhibition Centre. The stream of visitors continued unabated even on Saturday, the last trade fair day.
The organisers, Messe M?nchen International and its subsidiary MMI India for drink technology India as well as Messe D?sseldorf and its Indian subsidiary for International PackTech India, also drew a most positive balance. "We have achieved a completely new level with this result," declared Dr. Reinhard Pfeiffer, Deputy Chief Executive Officer of Messe M?nchen International. "Following three joint events, drink technology India and International PackTech India have finally become established in the India market." For MMI India, the official organiser of drink technology India, its Deputy CEO Bhupinder Singh stated: "We will make continuous efforts to make this exhibition much stronger in the future editions, which will mutually benefit our exhibitors, visitors and the industry." Werner M. Dornscheidt, Chief Executive Officer of Messe D?sseldorf, underlined: "Companies meet well prepared customers here who are ready to invest. Exhibiting companies reported very concrete business negotiations. The visitors put up with long travel distances in part to experience new technologies of international and domestic suppliers live at this trade fair. The very positive result of the trade fair duo makes us optimistic for the future."
For the conceptual sponsor of drink technology India and International PackTech India, the professional association Food Processing and Packaging Machinery in the German Engineering Federation (VDMA), its Managing Director Richard Clemens stated: "Our expectations with respect to the number of visitors and competence have been considerably exceeded. You sense a very positive mood with corresponding investment projects. Both trade fairs have become the optimum platform for the industry, and the many high-quality contacts promise good trade fair follow-up business." The Indian branch of VDMA, VDMA India, provided valuable support in moderating the round table talks and the exhibitor forums.
Given the good organisation and the enormous visitor interest, the exhibitor companies were more than satisfied. "dti stands well in line with our expectations," declared Franz Kammerloher, Vice President of Sales for Southern Asia / Eastern Asia at KRONES, Germany: "The exhibition has encouraged high value discussions with our prospective customers. It has been efficient to transform new businesses for Krones in India. We want to grow together with dti."
R?diger Selig, Marketing Manager Food & Beverage and his colleague Dirk Grafe, Industry Manager Brewing Automation, were part of the German federal participation with Siemens AG: "Organisation was effective and very well prepared. To be part of the “German Bundesbeteiligung” concept was very good, so all the German exhibitors could present their offer for the Indian beverage industry in a compact area. We are convinced, that we all together can transfer the positive information about the successful dti fair 2014 to all of our Indian and South East Asia customers to increase the attractiveness for them to join the next time in 2016 here in Mumbai."
Marylene Guislain, Sales Manager Castle Malting, Belgium, was above all impressed by the good organisation of drink technology India: "Our participation in DTI 2014 has been satisfactory indeed, with numerous interesting contacts in a merging and growing market. The support provided by the organisation team has been efficient and friendly. We already scheduled the next edition 2016 in our calendar!"
From the viewpoint of Laurent Fournier, Managing Director, Sidel India, the trade fair duo has developed into a unique business platform: "It was a unique opportunity for us to meet all the key players of the value chain. It gave a chance to put everything under one roof which augments the ‘end-to-end’ perspective for our customers and strategic suppliers. The exhibition has also been a great place to meet people with quality time and allowed us to understand customer needs."
Ravindra Kanetkar, General Manager – Business Development, KHS GmbH, Germany, considers dti a promising platform in one of the most attractive markets in the world: “The exhibition has encouraged high value discussions with our existing as well as prospective customers. It has been efficient medium to generate new businesses for KHS in India. dti stands well in line with our expectations and we look forward to participate at the coming editions of the exhibition.”
Vaibhav Saraogi, Director, Chemco Group, India, appreciates dti above all thanks to the high quality of its visitors: “drink technology India has given us the opportunity to meet with our very large customer base that require high quality packaging for their products. Being one of the largest producers of preforms, bottles, jars and containers we cater to a diverse set of industries thus making it difficult to narrow down our presence to few exhibitions, but dti is one of those exhibitions that concentrates on quality rather than quantity of visitors.”
Industry partners of drink technology India were KHS, KRONES, PENTAIR, SIEMENS and SIDEL.
There were also a lot of visitors at events of the supporting programme as at the stand presentations of the exhibitors. The Round Table Talk, held for the first time within the context of drink technology India, especially generated a lot of interest. Five renowned representatives of the international beverage and food industry discussed the topic "Outlook for Beverages and Food in India 2020." Topics such as hygiene, safety and waste management were focal points of the panel discussion, topics with which the Indian industry is increasingly dealing. Chandra Mohan Gupta, Head of Supply Chain, Coca Cola India Pvt. Ltd., summarized the results on behalf of the other discussion participants: "India is an evolved destination for food and beverage companies across the world and with 1/4th population of the world, India is a country that no company in the world can ignore. Urbanisation is changing the lifestyle of people in this country. There will thus be more affinity towards convenience. This makes the industry more promising with a fast paced growth."
The rows of seats in the exhibitor forum of drink technology India were also filled to the last seat. Exhibitors presented their product solutions dealing with all subject areas of "Beverage" and "Food". The Heidelberg publishing company hbmedia with the trade journal PETplanet was responsible for organising the exhibitor forum and Round Table.
The next drink technology India and International PackTech India is expected to take place from April 28 to 30, 2016, again in the Bombay Convention & Exhibition Centre in Mumbai.
drink technology India 2014: exhibitor testimonials
Messe M?nchen GmbH
Johannes Manger and Benjamin B?ttner
Tel. (+49 89) 949-21482 / -21484
Messe D?sseldorf GmbH
Eva Rugenstein/Kristian Sch?tt
Tel. (+49 211) 45 60 -240
9 Oct. 2014