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.
NürnbergMesse a Winner from Reunification
- 25 years since The Wall fell, no German exhibition company has benefited as much from reunification and the EU’s expansion to the East as NürnbergMesse
- 2014 sets new records for international exhibitors, visitors and exhibition space
- Good outlook for 2015
If 9 November 1989 was a historic turning point for Germany, for NürnbergMesse it has turned out to be the lift-off date for soaring growth. Key figures for exhibitions and finances have climbed steadily over the past 25 years: the figures for exhibitors and net occupied space have roughly trebled, attendance has grown 34 per cent, and corporate revenues have skyrocketed by a factor of 15. Today, Nuremberg is an international business hub – and NürnbergMesse is a central focus here. More than 29,000 exhibitors and 1.3 million visitors attended 151 NürnbergMesse Group events in Germany and other countries in 2014. The current financial year has seen the highest figures in company history for exhibitors from outside Germany, visitors, and leased exhibition space. For N?rnbergMesse Group CEOs Dr. Roland Fleck and Peter Ottmann, the conclusion is perfectly clear: ‘2014 was one of the best financial years in our company’s history. We have never been as international as we are today.’ All in all, N?rnbergMesse expects roughly EUR 230 million in revenue – and it should be recalled that compared to the 2012 record (EUR 236 million), the current figure does not include the biennial FachPack fair, which was not held this year.
International trade fairs normally represent the meat and potatoes of an exhibition company’s business. N?rnbergMesse saw growth here again in 2014: exhibitors from outside Germany increased 5 per cent, exhibitors’ pavilion space grew 11 per cent and trade visitors increased 12 per cent, making 2014 a record year in all three categories. ‘The gain in international participation is not just welcome for its own sake, it also makes N?rnbergMesse a more robust global competitor, said Dr. Fleck.
A sound foundation: Successful event formats
The main foundation for success once again in 2014 was NürnbergMesse’s customised mix of events. Almost two-thirds of this year’s international trade fairs set absolute records for net space sold. Shows like EUROGUSS, embedded world, Enforce Tac, IWA OutdoorClassics, fensterbau/frontale, HOLZ-HANDWERK, Interzoo, GaLaBau, POWTECH, it-sa, Chillventa and BrauBeviale each set records of their own. ‘The Brothers Grimm had a tale that famously hinged on “seven at one stroke” – for us, 2014 actually came to “three times seven at one stroke”. We set 21 impressive event records in a total of 36 international trade fairs.’
Additional benefits from Services
Ottmann and Fleck consider customer services a key basis for the year’s strong performance: ‘We have to offer our exhibitors and trade visitors a level of value added that they can’t get from other trade fair concepts and sites. Our energy campaign, enhanced service quality and a focus on customer benefits are key factors for N?rnbergMesse’s success. And we’ll be expanding those areas further in 2015.’
No German exhibition company has grown faster since 1989
And something else has become clear now, twenty-five years since The Wall fell and ten years since the European Union expanded to the east: quite apart from strategic business choices, the ‘geopolitical climate’ has also played a key role in N?rnbergMesse’s impressive success, the two CEOs said. To date, no other German exhibition company has benefited more from the historic paradigm shift. Nuremberg is continuing its long tradition as an international hub, and in the 21st century has become a central trade and exhibition site for companies from all over the world.
Good outlook for 2015
N?rnbergMesse’s cycles of events also dominate the corporate outlook for 2015, which is generally positive. Revenues of roughly EUR 190 to 200 million are expected for the year on the basis of the hosted events’ normal schedules. It remains difficult at the moment to tell specifically how global uncertainties may affect the exhibition business and N?rnbergMesse’s own event portfolio.
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 exhibitions and congresses and approx. 40 sponsored pavilions at the Nuremberg location and worldwide. Every year, around 30,000 exhibitors (international share: 41%) 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 India. The group also has a network of about 50 representatives operating in 100 countries.
22 Dec. 2014