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.
Acquisition of GEA Heat Exchangers by Triton is finalized
Christoph Michel, CEO of GEA Heat Exchangers Group, welcomes the new situation: “In Triton, we have a trustworthy partner that will strengthen and support our future activities.” Except for a new brand name that will be rolled out mid-term, he explains, nothing will change for the customers of GEA Heat Exchangers as a result of the move from GEA Group to Triton: “All projects and orders will be executed as accustomed, and our customers’ familiar and trusted contact partners in Sales and Support will now as before stand at their side.”
Company positions will be further developed in markets such as power generation, exploration, chemistry and petrochemistry, food and beverages and other process industries, as well as water and air treatment. The portfolio will be developed on a more customer-oriented basis.
This process will include internal reorganisation of business units within the GEA Heat Exchangers Group, which will now – in a simplified structure – serve the market in three Segments. One Segment will focus on the areas of climate and environment, with activities including all products for applications of HVAC technology.
The second Segment will concentrate on solutions in the area of major power-generation projects. These efforts will include wet cooling towers, dry cooling systems, filing media for cooling towers, as well as further applications.
The third Segment consists of systems and components for further heat exchanger application areas such as those in the markets of oil and gas and petrochemistry, food and beverages, marine and transportation systems. These include plate heat exchangers, finned-tube heat exchangers, as well as shell-and-tube heat exchangers, which are used in a great number and variety of processes.
This orientation will be accompanied by establishment of a new brand. An autonomous profile for our heat exchanger activities – a profile that is independent of GEA – will prove effective in future penetration of new markets. At the same time, this corporate profile will express the values of the brand GEA that our regular customers have learned to respect, as well as the benefits of our product brands. We will continue to use the name “GEA” until introduction of the new brand.
Christoph Michel, CEO
31 Oct. 2014