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.
Philippines. Beer connoisseurship
Booze brings in some of the most renowned European beers, including German biggies Beck’s, Warsteiner and Paulaner; Belgian beers Stella Artois, Chimay, Leffe, Delirium Tremens and Hoegaarden, Murphy’s Irish Stout, among several others. Many of these brands are also sold in the draft format.
When I found out Raj was the man behind the latest talk-of-the-town destination, The Brewery at the Palace in Uptown Bonifacio Global City, I was not a bit surprised. After all, Raj and his alcohol and food loving cohorts are also behind other successful resto-bars like Draft, The Distillery and Imperial Ice Bar. I was able to catch up recently with Raj and his German brew master Oliver at The Brewery for a lively discussion on beers.
Raj professes that the idea of a brewery has always been a dream, especially for a guy who has been a successful beer importer and distributor for over a decade and a half. His company, Booze, was the first to import beers in the draft format, with bigger size kegs. His Euro gastro-pub themed Draft serves several beer brands in draft. Prior to this, the imported beer scene just featured typical bottles and cans.
Raj admits that the issue with beer is always about freshness. While his company brings in the beers at the best conditions possible, they still have to deal with the 60 to 90 days lead time from order, the state of the cargo, and other factors. The resultant beer that arrives, while close to the best beer you can possibly get given its circumstance, will sadly still never be as fresh as those drunk in Germany or Belgium, or wherever that brew comes from. Raj explains that beers that are exported -- whether in bottles, cans or even in metal kegs -- are still conditioned for traveling. Some of the freshness and quality, while not really noticed by uninitiated beer drinkers, will be lost.
So, when his business partner and friend from other ventures, nightclub king Erik Cua, offered him a piece of bare land in the yet-to-be-developed Fort uptown area two-and-a-half years ago (an area that was to be christened The Palace), he seized the opportunity. The Brewery was build from scratch. All technical specifications required for a micro-brewery -- from the all-important water-filtration, boiler room, chimney provision, correct cooling system, to the strategic location for their five hectoliter brewery machine and storage tanks -- were all painstakingly developed from literally undeveloped grassy land.
For the brewery equipment, Raj went with the company Salm, one of Europe’s oldest manufacturers of brewery machines. Only the best ingredients too -- malts, hops and yeasts -- are used for their brewing. As Raj rightfully declares, after offering draft format beers, the next natural progression is to brew your own fresh beers and serve drinkers the freshest beers possible. And this is what The Brewery has been doing since opening in July of last year.
FOUR REGULARS AND TWO SEASONALS
Brew master Oliver (yes... only first name basis he insists) took me on a quick short tour of the beers being offered at The Brewery. There are four different beers offered on a regular basis, and two, or sometimes three, seasonal beers depending on availability. The four regulars are smartly chosen from four different types of beers: 1.) Weissbier, a wheat beer, 2.) Pilsner, a lager, 3.) IPA or India Pale Ale, an ale, and 4.) Stout, a stout. Each tastes distinct from the others. A sampler beer flight of P280 gives you a chance to try all four regulars, before choosing a bigger 300ml or 500ml size glass.
Admittedly, I never ever thought that beer could also be this complicated and versatile. The Weissbier (which means white beer in German) was really fresh, light, more foamy, and very crisp. The Pilsner has a light, yet more pronounced bitter taste. The IPA is really luscious, from its flavors to its amber color. While the stout -- my preferred beer type -- is really well-textured and oozing with roasted coffee flavors. I now understand what Raj means when he says freshness makes a difference, as I compare The Brewery’s Stout with my recollection of drinking Guiness stout beers.
The Brewery also runs two seasonal beers which are brewed in the 50 HL brewery machine for normally one run of 500 liters. This is a one-time run and therefore, once the brew is consumed, the beer is taken out of the menu and replaced with another new brew. Raj wants the seasonal brews to be really special, and in the past they have done some pretty unique beers, ranging from a ginger beer and a honey beer to even thematic beers for the Octoberfest and a Christmas brew.
At present, there are three seasonals being offered: 1.) Sampaloka -- a wheat beer infused with tamarind (sampalok) and lemongrass, 2.) Jasmine Citra Lager -- a lager brewed with 25% Jasmine rice and Citra hops, and, 3.) Brewmaster’s Gold -- this is brew master Oliver’s gold medal beer, a Munich-style dark lager awarded by the prestigious Monde Selection in 2014. These beers really got me more interested. The first two seasonals -- the Sampaloka and Jasmine Citra -- both have more wine-like qualities on the nose. The Sampaloka has a nice tangy nose, while the Jasmine Citra has almost a Chardonnay-like characteristic to its aroma. The Brewmaster’s Gold is a bit more serious, with its dark mahogany color and fuller texture. Overall, I got schooled on beers, and it might be really hard to go back to drinking regular canned beers after.
FOOD AND GROWLERS
To say that The Brewery is merely a beer drinking place is a big understatement. The Brewery has a food menu that can match any restaurant in the area. Raj tells me that in their over half a year of operations, the food revenue is actually 50% of their total business. Beer closely followed at 40%, and the rest of the beverages from other forms of alcohol, contribute the remaining 10%. The place is actually packed for dinner and onwards. The beer percentage may however change in the near future as The Brewery will be adding take-out beers soon. The company is currently waiting for a 1-Liter glass beer growler, sourced from Germany to arrive. I was shown a picture of the growler by Raj, which is a beer container made of glass with a hinged gasket cap that meant to prevent oxidation and maintain freshness of the beer for a week or more. This will be a reusable and refillable bottle, with a best-before freshness date stickered to the cap. Right now, The Brewery does not allow their freshly brewed beers to be brought out.
I used to look at beer as merely an inebriating beverage with no wine-like or single malt whisky-like sophistication -- I was definitely badly mistaken. There is so much to learn about beers, over mere combinations of malts, hops and yeasts. We should all be grateful that we have The Brewery here to educate us Filipino consumers on exploring the different types, flavors, and styles of beers. The Brewery is even planning beer classes and beer brewing demonstrations for beer aficionados to attend, with no less than brew master Oliver presiding. Hopefully, next time I can relate to German beer terms like Kellerbier, Hefeweizen and Doppelbock, like I understand my French Bordeaux, Burgundy and Rhone.
The Brewery at the Palace is located at the 10th Ave. corner 38th St., Uptown Parade, Bonifacio Global City, Taguig City. Business hours are from 11 a.m. to 2 a.m. You can reach them too at +63-917 638-3339, 813-9429.
19 Feb. 2016