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.
Craft beer brewers bet big on India market
Koch is CEO and co-founder of Stone Brewing Co., the eighth largest craft-brewing company in the US. Their’s was the 800th microbrewery in the US when he started, but now is among the fastest growing and there are 4,400 brewers of craft beer in the US currently. Stone Brewing is the first American craft brewer to own and operate a brewery in Europe as they start operations in Berlin, Germany. He is also handholding start-ups in the Indian microbrewery space. He has invested in, Independence Brewing Co., a microbrewery in India based in Pune, and was here to support fellow brewers. There are at present 10 microbreweries based in Maharashtra and Koch doffed his hat to them for starting the craft beer revolution in India amidst a challenging alcohol regulatory regime.
Listening to Koch were entrepreneurs who have set up microbreweries across Mumbai and Pune, dozens of home brewers and fans of the craft beers. This was a first-of-its-kind industry meet-up, with eight microbreweries under one roof, with nearly 20 craft beers on tap in one single place. There was a ‘Beer Bus’ that brought in guests from Mumbai to Pune and back, so that they could spend an evening with Koch and some good beer.
The big names in the craft beer business were there with Independence Brewing Company hosting this infant industry meet. Independence Brewing brought together Gateway Brewing Co. (Mumbai), Doolally (Pune/Mumbai), Effingut Brewerkz (Pune), TJ (Pune), The Barking Deer (Mumbai), The White Owl (Mumbai), Irish Village (Pune) and Brewbot (Mumbai) all under one roof showcasing 20 craft beers on tap.
This is only a beginning, says Shailendra Bist, CEO and co-founder of Independence Brewing. California alone has 320 craft beer brewers, he points out. Bist says there could be around 150 microbreweries in the country in the next five years. People are sick of drinking the same stuff, so craft beer followers are increasing and it will grow as more craft brewers come; this is happening mostly by word of mouth and very little promotion, says Bist.
Doolally. which pioneered the microbrewery concept in India in 2009 and worked hard at getting regulators to allow microbreweries to operate in the country, is expanding. After running the microbrewery in Pune, Doolally has opened to outlets in Mumbai at Bandra and Andheri. Suketu Talekar, co-founder, Doolally, says this business needs patience as radical reform on alcohol will not happen in the country easily as delinking craft beer from IMFL or toddy will take time. “Whatever has happened so far is encouraging and it has attracted well meaning high quality entrepreneurs,” says Talekar.
Players from Pune are now going to Mumbai as it is a bigger market. A few Bengaluru-based brewers are looking at coming to Mumbai and Pune. Delhi has jut opened up licensing and a couple of microbreweries are in the works.
Koch too admires the work done by Indian brewers considering the perception issues here about alcohol and the uphill battle in the country.
“It is not just about beer but about a cultural shift,” says Koch, but he is bullish about the prospects of this business in India. “I see amazing potential,” says Koch.
* In a first-of-its-kind industry meet, eight microbreweries recently came under one roof in Maharashtra
* The big names in the craft beer business including Gateway Brewing Co. (Mumbai), Doolally (Pune/Mumbai), Effingut Brewerkz (Pune), TJ (Pune), The Barking Deer (Mumbai), The White Owl (Mumbai), Irish Village (Pune) and Brewbot (Mumbai) were among the participants
* There are at present 10 microbreweries based in Maharashtra
8 Jan. 2016