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.
Myanmar. Beer Brands Return to Heineken from Military-Owned Brewery
Tiger and ABC Stout, which Myanmar Brewery has produced and distributed for the Burmese market since 1995, are finally going back to Heineken and its local partner, Asia Pacific Breweries-Alliance Brewery Company Limited (APB-ABC). As of late last year, Myanmar Brewery’s license to produce the two beers expired, said Lester Tan, managing director of the Heineken joint venture APB-ABC.
“Actually, we’re the original owner of both Tiger and ABC Stout. That’s why now, we’ll take them all back and sell to this expanding market,” Tan said on Wednesday at a press conference.
Tiger and ABC Stout will now be brewed in Heineken’s own US$60 million brewing facility in Rangoon’s Hmawbi Township, which opened in July last year. The brewery has the technical capacity to produce 33 million liters of beer per year, but this year the company plans to expand production to about 45 million liters, according to Tan.
Of the current Tiger and ABC Stout brand designs, Tan said the company will make changes to reflect an updated product look, but assured that the taste of the beers will remain the same.
“We’re excited to welcome both brands. It feels like a true homecoming and we’re pleased to bring these two beers to beer stations, restaurants and supermarkets in Myanmar,” he said.
Heineken and Myanmar Brewery have maintained a professional relationship since 1995. In the following decade, Heineken—a Dutch company—left the country due to economic sanctions imposed by the European Union against Burma’s military government. At this time, the Myanmar Brewery took over licenses for Heineken’s products and continued to produce Tiger and ABC Stout.
Myanmar Brewery is the producer of Myanmar Beer, Andaman Gold and Myanmar Double Strong, and currently has a strong lead in the domestic beer market. The company’s total revenue for the 2014-15 fiscal year topped 300 billion kyats (US$233 million), according to company figures. Their products are brewed in facilities in Rangoon’s Mingaladon Township.
Myanmar Brewery Limited (MBL) was established in 1995 as one of the earliest major joint-venture projects in Myanmar with a total invested capital of US$60 million.
“It seems the previous company [Myanmar Brewery] didn’t want to extend the license and did not contact us about an extension, so that’s why we took this license back,” Tan said.
In 2013, Heineken began working with ABC, which is led by Aung Moe Kyaw, a Burmese entrepreneur well known in the beverage industry. Of the company’s shares, ABC claims 43 percent and the remaining 57 percent are owned by Heineken. In the last three years, they have also introduced a new beer in Burma: Regal Seven.
4 Feb. 2016