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. Hyderabad court issues NBW against Vijay Mallya
The NBW was issued in connection with alleged dishonour of a cheque of Rs 50 lakh to GMR Hyderabad International Airport Ltd (GHIAL). The police have been ordered to produce Mallya, who is currently in the UK, in the court by April 13. However, the counsel for Mallya has decided to move the Hyderabad High Court seeking quashing of the NBW.
The warrant was issued following a petition by infrastructure major GMR Group’s Hyderabad arm, which had sought prosecution of Vijay Mallya as he had defaulted on payments and cheated the company by issuing cheques that bounced.
The airport officials had filed 11 cases against Mallya’s airline Kingfisher for non-payment of dues to the tune of Rs 8 crore. Cheques issued for Rs 50 lakh had bounced and a case was filed against him.
The 14th Additional Chief Metropolitan Magistrate court issued the NBWs on March 10 against the now defunct Kingfisher Airline, its chairman Vijay Mallya and another senior official of the company and posted the matter for April 13.
“Mallya and others were supposed to appear before the court on March 10. They did not appear. Hence, court issued NBW order which has to be executed by April 13,” GMR counsel G Ashok Reddy said. There are a total of 11 cases involving Rs 8 crore payment to GMR and the NBWs were issued in connection with a Rs 50-lakh bounce cheque, he said.
Advocate H Sudhakar Rao, appearing for Mallya said, “NBWs have been issued in this case. There are other cases going on wherein we have got orders from High Court dispensing with his (Mallya’s) attendance.”
“I will be filing an application in the high court for quashing this order of issuing warrants,” Rao said. When contacted, GMR refused to comment on the issue saying the matter is sub-judice.
Earlier in 2012, GHIAL, which runs Hyderabad’s Rajiv Gandhi International Airport, had filed a petition in the court seeking Mallya’s prosecution for defaulting on payments and cheating them by allegedly issuing cheques that bounced. Later, GHIAL in October 2012 withdrew the case after the airline agreed to pay the outstanding amount due to the airport operator. The court had also then issued NBWs against five senior executives of the airline, including Mallya.
14 Mar. 2016