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. Role reversal for Minister
For Natham R Viswanathan, Minister for Power, Prohibition and Excise R Viswanathan, who has vociferously defended the State Government’s liquor policy, it was a role reversal of sorts on Saturday in Dindigul when he flagged off an anti-liquor awareness rally.
Just a fortnight ago, Mr. Viswanathan had rejected the demand of opposition parties in the Assembly to introduce prohibition and argued that if liquor sale was banned, Rs. 15,000 crore of revenue would reach the hands of anti-social elements.
While his Ministry has been annually reeling out statistics on how TASMAC revenue had improved, he was happily in the midst of anti-liquor campaigners. Quite curiously, the campaign was sponsored by the TASMAC and the participants raised slogans on the ill-effects of alcohol. Onlookers pointed out that recently law college student Nandhini, who was arrested for fasting demanding prohibition, had fervently appealed to the government to at least create awareness among the people on the dangers of drinking.
The DMK appears to be using multiple emissaries to convince the DMDK, led by actor Vijayakant, to join its front for the Assembly elections. A direct invitation from DMK leader M Karunanidhi apart, sources state that a very prominent businessman from Tamil Nadu who is considered close to the DMK leadership and has a passion for cricket, also tried to convince Mr. Vijayakant to decide in favour of an alliance. To the surprise of many, this businessman met the Leader of the Opposition last week at the DMDK’s headquarters in Chennai and the party chose not to publicise it.
The visit of the Chief Election Commissioner Nasim Zaidi and the two Election Commissioners to Puducherry recently was not without its share of controversy. The top poll officials drew criticism from a section of politicians for conducting its consultative meetings at a private beach resort far away from the city. Mr Zaidi pulled up officials for allowing a batter of mediapersons in the lobby of the resort.
Though it is customary practice to allow photographers and videographers to cover the initial moments of the meeting, the Commission held its first meeting with the Puducherry Chief Electoral Officer V.Candavelou and DIG K.Jagadesan late in the evening after the police had cleared out the journalists. The CPI (M) Puducherry unit secretary R Rajangam and State Committee member V Perumal made public their resentment over the Election Commission’s choice of venue. “When there are so many Government guest houses and conference halls in the town, they chose to stay at the resort,” commented Rajangam. Nonetheless, there is no hard and fast rule as to where the Election Commission officials must conduct their meetings.
The State government has been time and again writing to the Central government on various issues and seeking funds for implementing certain schemes. However, it appears that not all the funds that are sanctioned are utilised optimally. Tamil Nadu, the largest beneficiary of the Dam Rehabilitation and Improvement Project (DRIP) of the Union Ministry of Water Resources funded by the World Bank, is reportedly “holding down the overall DRIP progress.” At a recent meeting to review the progress of DRIP in Delhi, the Secretary of the Ministry of Water Resources observed that the implementing agencies of Tamil Nadu “need to improve their performance.” Of the 225 dams located across seven States, 107 dams are in Tamil Nadu. Also, of the total Rs. 2,100 crore budget for the project, over Rs. 745 crore has been earmarked for dams in the State. Tamil Nadu Water Resources Department and Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) are the implementing agencies under the State government for this project.
15 Feb. 2016