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. Beer packs a punch in Delhi this winter
Maybe it is the unusually warm winter this time or changing tastes, but Delhiites are turning this notion on its head.
Beer sales have seen an exponential growth this winter as compared to the last season. The sale of rum, on the other hand — the quintessential ‘winter drink’ — has actually seen a dip.
According to figures of alcohol sale in the Capital with the Delhi government’s Excise Department, sale of beer has gone up by 41.20 per cent between December 1, 2015, and January 15, 2016, as compared to sales between December 1, 2014 and January 15, 2015.
For the same period, the sale of rum has gone down by 2.30 per cent.
This winter has seen some unusual weather trends with the day temperatures hovering mostly around 20 degree Celsius and the characteristic dense fog largely missing.
It is only recently that Delhi has started feeling the chill.
“The sale of rum has not been satisfactory this winter even though it is a popular drink during this season. With the weather now getting colder, we hope to see the held over stock finally moving,” said a Delhi-based liquor distributor.
In another interesting trend, the sale of alcopops like Breezers that have low alcohol content has seen a growth of 51.40 per cent.
Gin, a popular base for cocktails, has seen a huge spike of 100.9 per cent, while vodka, another popular cocktail base, has seen a jump of 32.63 per cent in sales.
In contrast, the traditionally popular whiskey has seen a growth of only 9.92 per cent. Overall, the sale of alcohol in Delhi has gone up by 18.16 per cent as compared to last winter.
Industry experts, however, ascribe the trend to changing taste of Delhiites more than the warm winter.
“The trend is changing and discerning customers, who have travelled all over the world have more choices available that they can pick from. People are becoming more conscious about their choice and prefer drinks with low alcohol content,” said Prakul Kumar, Secretary General, National Restaurant Association of India.
Mr. Kumar said traditional notions about winter and summer drinks are changing due to availability.
“Ten years ago, there were a couple of brands of whiskey and IMFL and some brands of beer. The amount of choice available now is phenomenal. People have travelled and they have tastes. Instead of two, they have a choice of 50 available before them,” he said.
“Beer is an entry-level drink and, in my opinion, this just shows that a lot more people are now drinking. Rum is a drink that you graduate to and no one starts drinking with rum,” said Atul Kapur, a partner at QBA.
“A lot more brands of beer are available now and it is not considered alcohol, per say. It is also a day time drink as compared to say whiskey or rum,” said Mr. Kapur, “Beer is the future.”
22 Jan. 2016