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.
Cooperation agreement signed between Messe München and the Italian wine association UIV
The trade-fair cities of Munich and Milan have teamed up to create a special constellation in wine technology: SIMEI, the leading international exhibition for enological and bottling equipment, will in future take place every four years in conjunction with drinktec, the world´s leading trade fair, in Munich. SIMEI will still retain its traditional two-year cycle, but from now on, its venue will alternate between Italy and Munich. “This agreement is unique in the international trade-fair business,” says Domenico Zonin, President of the Unione Italiana Vini Società Cooperative (UIV):
A cooperation agreement to this effect has now been signed by the organizers of the two trade fairs—the Milan-based Unione Italiana Vini Società Cooperative (UIV) and Messe München. drinktec and SIMEI are therefore pooling their respective strengths in a twin platform that will be the world´s most important technology, trading and marketing showcase for the sector.
Reinhard Pfeiffer, Managing Director at Messe München with responsibility for drinktec, sees this cross-border cooperation as strengthening both parties: “I am very pleased that we have reached an agreement. Both trade fairs will benefit from it. The exhibitors at drinktec, of which almost half also offer solutions for the wine industry, will have access to even more potential customers as a result of the integration of SIMEI. Vice versa, too, the international scope of drinktec will benefit the SIMEI exhibitors. And not least, this agreement also strengthens the status of Munich as a top location for trade fairs.”
Domenico Zonin is also confident: “The cooperation with drinktec is the basis for the further development and internationalization of SIMEI, as the leading trade fair for wine technology.”
The next SIMEI takes place from November 3 to 6, 2015 in Milan. After that, from September 11 to 15, 2017, it will celebrate its Munich premiere, as an integrated part of drinktec. In 2019 SIMEI will then again be held in Italy, where, supported by drinktec, it will feature an extended portfolio to include further beverage categories.
The agreement between MMG and UIV makes provision for a special SIMEI exhibition space within drinktec 2017 in Munich dedicated exclusively to the wine sector. This showcase is to extend to at least two exhibition halls, and cover a total of 20,000 square meters of space. As a result the total hall space taken up by the world´s leading trade fair drinktec rises to over 150,000 square meters.
In addition to this, the organizers of the two trade fairs have agreed that SIMEI will also get involved in the worldwide events portfolio of drinktec: With drink technology India, food & drink technology Africa and China Brew China Beverage, drinktec already has a strong presence in key global markets. SIMEI has been held in Milan since 1963, and it is regarded as the world´s leading trade fair for wine technology. Over 600 exhibitors and more than 40,000 visitors are expected to attend SIMEI in 2015.
The origins of drinktec go back to the 1950s. This trade fair is regarded as the world´s No. 1 event for the beverage and liquid food industry: It covers the entire process chain from raw materials, agents and additives, to production, filling, packaging and logistics, as well as marketing.
Francesco Pavanello, Director-General of UIV, commented: “I am proud to see the attention and recognition shown to this joint project by such an important and international trade-fair company as Messe München. The most important components of this agreement in our view are: UIV retains the brand rights to SIMEI; SIMEI has high visibility at a trade fair as prestigious as drinktec; and we have the possibility of further joint projects in the medium and long-term.”
Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen), the conceptual sponsor of drinktec, sees the cooperation as above all bringing advantages to the exhibitors and visitors of both trade fairs: “The technology already showcased at drinktec for the wine industry will now be superbly supplemented by this cooperation with SIMEI. For drinktec exhibitors there will be additional visitor potential from strong wine-growing countries—above all Italy. In addition the cooperation also offers significant added value to visitors from emerging wine-growing countries, thanks to a more in-depth spectrum of products and services.”
drinktec has been held in Munich since its premiere in 1951. A four-year event cycle was introduced in 1985. drinktec is the most important trade fair for the sector. Manufacturers and suppliers from all over the world—global companies and SMEs alike—meet up here with all sizes of producers and retailers of beverages and liquid food products. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. At this event manufacturers present the latest technology for processing, filling and packaging all kinds of beverages and liquid food—raw materials and logistics solutions included. The themes of beverages marketing and packaging design round off the portfolio. drinktec 2013, which took place at the Messe München exhibition center in Munich from September 16 to 20, 2013, attracted 1,445 exhibitors from 77 countries. And with 66,886 trade visitors from 183 countries, drinktec 2013 celebrated a resounding success. The next drinktec takes place from September 11 to 15, 2017 in Munich.
UNIONE ITALIANA VINI
SIMEI is organized by Unione Italiana Vini, the Association that represents most Italian vine-growing and wine-making companies. It includes about 700 member companies from all Italian regions, representing 85 percent of Italian wine export.
Serving Italian wine companies for more than one century, the Unione Italiana Vini organization has become a unique model in the Italian and international association landscape. Their lobbying action and promotion of the interests of companies to Italian and international institutions, aimed at protecting and valorizing the economic cycle of the vine-growing and wine-making supply chain, is enhanced by a number of initiatives across a range of strategic areas for the industry. Unione Italiana Vini is a think-tank and a center of excellence for the design and implementation of solutions for information and promotion—in Italy and abroad—to the benefit of wine producers, technology vendors, wine analysis and consulting services.
10 Aug. 2015