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. Inflow of cheap liquor from Goa, Andhra dispirits Karnataka
This reverse trend, coupled with the continued inflow of the low cost liquor from Goa, has dented the State Excise department’s revenue mobilisation to quite an extent.
Over the years, the department had gained a monopoly over sales of liquor in the districts bordering Andhra Pradesh, Tamil Nadu and Kerala. Karnataka’s sales boomed especially after Kerala started to implement prohibition of liquor sales in a phased manner.
However, not wanting to be left behind, Andhra Pradesh by introducing its new liquor policy, has heavily slashed taxes on Indian Made Liquor (IML) to boost its sales and revenue.
According to officials, it launched a cheap liquor brand ‘999 Powerstar Fine Whisky’, which is priced between Rs 42 and Rs 45 per 180 ml bottle. This is considerably cheaper than the brands like Raja Whisky and Haywards, which are sold at Rs 50, by Karnataka. As a result, the sales, which had peaked over the last few years in the bordering districts of Raichur, Ballari, Chitradurga, Tumakuru, Chikkaballapur and Kolar, have come down drastically.
Excise Commissioner S R Umashankar said that the department is also watchful of the Andhra Pradesh brand making its way into Karnataka.
“Until now, our liquor was the cheaper and we registered good sales in the bordering districts, which included consumers from the neighbouring State, as well. With the introduction of the 999 whisky brand, our revenue mobilisation has been dented marginally. Like the Goa and Maharashtra borders, which are porous, the same problem persists on the Andhra and Telangana borders, as well. In Dakshina Kannada we have increased vigilance to check the inflow of Goan liquor, and now we are doing the same on the Andhra-Karnataka border as well.” Between April and December 2015 alone, the department has seized close to 7,500 litres of liquor entering into the State from Goa.
“Goa border (Anmod and Majali) is our main problem. Owing to the low level of taxation, Goa liquor is available at much cheaper rates. Though we have set up two checkposts, liquor is illegally transported not only by boats and trains, but also through forests,” the commissioner said.
Popular Goan brands
Some of the popular brands that are illegally transported into the State are Honey Guide Brandy - Rs 21.60 (180 ml); Honey Grade Brandy - Rs 18; Reals Whisky (750 ml) - Rs 86; Life House Premium Blended Malt Whisky (750 ml) - Rs 90; Light Horse Premium Blended Malt Whisky (750 ml) - Rs 79; Goa Palm Fenny (750 ml) - Rs 90; Goa 77 Deluxe Cashew Fenny (750 ml) - Rs 100.
2 Feb. 2016