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.
Exhibition world meets in Columbia
World Congress of “Union des Foires Internationales” (UFI) in Bogota is key platform for global exhibition industry
Premiere in Bogota: The first representative of N?rnbergMesse in Columbia commences work. In the run-up to the UFI Congress in Bogota, Dr. Roland Fleck, CEO of N?rnbergMesse, emphasized the great importance of the cooperation between the Andes and Franconia: “We wish our new representative lots of success in developing the presence of Columbian companies at worldwide events organized by N?rnbergMesse.” The annual congress of UFI, the Global Association of the Exhibition Industry, which is also attended by N?rnbergMesse, takes place in the Columbian capital at the same time.
Through the cooperation with the German-Columbian Chamber of Industry and Commerce (AHK) in Bogota, N?rnbergMesse is present with a representative in this South American country for the first time. This increases the global presence of the N?rnbergMesse Group to meanwhile 111 countries. The core task of AHK in this setting is mainly to attract and support exhibitors and visitors for events of N?rnbergMesse and its subsidiaries. The conclusion of the agreement is of major importance for AHK Executive Officer Thomas Voigt: “We are very familiar with the Columbian market and know what needs are decisive at the interface between South America and Germany. As the new representative of N?rnbergMesse we are supporting a real top player in the exhibition industry. We are proud of this and at the same time it is a commitment to act.” Dr. Roland Fleck and Peter Ottmann, joint CEOs of N?rnbergMesse, welcomed AHK as the new representative in Columbia and the associated more intensive exchange between the two countries: “The economic cooperation between Europe and South America still has considerable potential, which must be developed more strongly. In this respect, our new representative in Columbia is a logical step in this direction.”
Talks planned with industry associations
The annual meeting of UFI, the Global Association of the Exhibition Industry, takes place in Bogota this week. Dr. Fleck is travelling to Bogota before the UFI Congress in order to hold talks with organizations such as Columbian industry associations and discuss other possibilities for cooperation. The CEO of N?rnbergMesse is also supported by Ligia Amorim, the Managing Director of N?rnbergMesse Brasil Ltda., who is also Deputy Chairwoman of the “Latin America Chapter” of UFI.
UFI Congress as global gathering of the exhibition industry
Current trends in the international exhibition industry are then the focus of the UFI Congress: 260 million visitors, 4.4 million exhibitors, about 31,000 exhibitions worldwide – the world of international exhibitions is powerful. In terms of revenue, N?rnbergMesse meanwhile belongs to the top group of exhibition companies and occupies 12th place in the world. Although it is only four decades young, N?rnbergMesse has nevertheless managed to join the TOP 15 worldwide: Some one million square metres of rented display space, the organization of 120 trade fairs and congresses worldwide and up to 1.4 million trade visitors a year are facts that speak for themselves. The exhibition themes of N?rnbergMesse are “leading edge” and further international orientation offers excellent possibilities in this connection. However, because this market position in an environment marked by intensive competition is in no way carved in stone and must be continuously earned anew, the cultivation of contacts and dialogue with disseminators and partners in the sector are key parameters for further success. The UFI Congress offers a valuable platform in this connection and shows trends in current developments and innovations in the exhibition industry. The Global Association of the Exhibition Industry, “Union des Foires Internationales” (UFI) based in Paris, represents the interests of over 600 of the world’s largest organizers of exhibitions and owners of exhibition grounds.
About the N?rnbergMesse Group
N?rnbergMesse is one of the 15 largest exhibition companies in the world and among the Top Ten in Europe.The portfolio covers some 120 national and international trade fairs and congresses and approximately 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 N?rnbergMesse Group’s own, partner and guest events. The group is present with subsidiaries in China, North America, Brazil, Italy and in India too.The N?rnbergMesse Group also has a network of approximately 50 representatives operating in over 100 countries.
28 Oct. 2014