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.
India. Liquor sale falling in Tamil Nadu
There have been attacks on liquor shops, protests by activists during the last year, demanding implementation of prohibition in the State. While the beer sales recorded the lowest in the last 10 fiscals, the IMFS sales started to dip from the following fiscal.
The decline in sale of both beer and IMFS has been sharp during the current fiscal too, evident in the month-wise data available with The Hindu , which show fall in sales during all the months compared to the corresponding months of the previous fiscal, except for November last year (see accompanying graph). These figures were compiled by the Commissionerate of Prohibition and Excise late last year.
A senior official in Tasmac, who requested anonymity, said, “The sales numbers have gone up in the last two months. During the recent three-day festival holidays, Tasmac sold an additional 33,000 cases”, but he was not able to support his claim with official numbers.
The official admitted that the sales were down for a certain period last year due to several reasons, including “illicit liquor entering the market and hike in liquor prices.” Beer consumption, which is usually high during summer, failed to retain its spot in the last two years due to a spike in prices, he observed.
Though after the price hike, some beer consumers have migrated to other liquor, the sales numbers were stagnant. “We wanted to do a reality check on why sales dipped suddenly and we did a SWOT analysis, which has now helped revive sales,” the official added.
Tasmac did a SWOT analysis in all its 6,814 outlets last year, which brought to light that there was a six per cent dent in sales. More than 1,000 bars have closed shutters in the last two years, while some were operating without permission.
Though the number of retail vending shops remained almost the same - between 6,798 and 6,803 during 2012-13 and 2015-16, the number of bars declined from 4,730 to 4,271 and finally to 3,877.
The State-run Tamil Nadu State Marketing Corporation (Tasmac) has a monopoly over the wholesale and retail vending of alcoholic beverages in Tamil Nadu and the revenue it generates is considered the highest contributor to the State coffers.
19 Jan. 2016