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.
Carlsberg Establishes Greenfield Brewery in Myanmar with ALECTIA
The joint venture is 51% owned by Carlsberg.
“We have followed the developments in Myanmar closely and are encouraged by the recent political developments in the country. We believe that the timing is right for us to invest in the country. We expect that the Myanmar beer market will grow strongly in coming years as the economy expands. MGS Breweries is one of the leading soft drinks producers in Myanmar and a partner we have known for many years. This partnership is a pivotal development in expanding our presence in the country,” said Roy Bagattini, Sr. Vice President of Carlsberg Asia Region, in a press release back then.
“We are delighted to partner with Carlsberg, bringing together one of the world’s leading brewery groups to combine with MGS Group of Companies – one of Myanmar’s leading industrial groups. This collaboration provides us with the opportunity to play a key role in developing the beer category in Myanmar. As an industry leader, Carlsberg is bringing in its expertise, innovation and international standards. This, combined with MGS Group’s already well-established capabilities and local position in the market, will enable us to capitalize on the significant growth potential of the beer category,” commented Thant Zin Tun, Vice Chairman of MGS Group of Companies at the same time.
The factory had its first product ready in early 2015. Today, Carlsberg has a fully operational brewery that follows high international standards. During the establishment of the greenfield brewery, the Danish consulting company ALECTIA has acted as an adviser and project manager. ALECTIA has been involved in feasibility studies of land and water services, project execution method, tendering, procurement strategy, conceptual design, site development, construction, installation and the commissioning phases.
In a press release on the company’s website, ALECTIA states that “The greenfield project was complicated by the fact that, initially, the only resource which could readily be made available on site was the power supply. No water sources or disposal systems for wastewater existed in the area. Therefore, besides levelling the rough land to make space for the brewery as well as for roads and infrastructure, a very important part of the project consisted of finding fresh groundwater sources. Additionally, the brewery itself was designed with a full wastewater treatment plant.”
The weather conditions such as the monsoon season, high humidity levels and occasional floods also posed as obstacles towards the construction and installation work. One of the solution was to prevent the brewery from beeing flooded was to set the brewery site above the levels of local roads and adjoining lands to keep floodwater from running to the site.
As the adviser and project manager ALECTIA also made sure, that the project lived up to international standards, which also came with challenges in an underdeveloped country as Myanmar, where there has been long separation from international business.
“In terms of health and safety, one of the main challenges was getting the local workforce to adopt international standards for clothes and footwear instead of coming to work in their typical attire. ALECTIA helped establish standards for personal protection and safe working practices and developed a construction safety plan for the entire site including utilities and packaging lines, etc,” ALECTIA states on the company website.
The international standard included that quality, budget, safety and environmental protection were met.
The brewery has its opening ceremony on the 7th of May 2015.
3 Feb. 2016