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.
Creative Business Ideas in Indonesia: Beer Delivery Service
For such a drink you now have to go to the (licensed) supermarkets and hypermarkets or visit a cafe or restaurant. This increases the distance you need to travel for a drink or - when drinking in a cafe or restaurant - it becomes much more expensive.
In an effort to adjust to the new regulatory environment and generate new revenue streams, local alcoholic beverage producers, including Multi Bintang Indonesia, started to offer alcohol-free beers to customers in the minimarkets and kiosks. Others detected another interesting and original opportunity brought about by this new regulation: the beer delivery service. Those consumers who enjoy a beer but are reluctant to travel the distance to the nearest hypermarket can simply use a local delivery service. In Jakarta there are now a couple of these delivery services - 'Bir Delivery', 'Beer on the Way', and 'Your Beer is Here' - and which have gained popularity.
These delivery services do not purchase the product in hypermarkets but make a deal with the local beer distributor and then either bring the products to the consumer using their own means of transportation or - if the service does not have a fleet of motorcycles - it uses the service provided by Go-Jek, a motorcycle taxi ordered through an online application on the smartphone. After Jakarta, these beer delivery services have also spread to Bandung (West Java) and on the island of Bali.
he Your Beer is Here delivery service receives around eight orders per day, on average. Per order a minimum purchase of IDR 200,000 (approx. USD $15) is required. As such, revenue is estimated at around IDR 48 million (approx. USD $3,600) per month; a good figure for a small local entrepreneur (these beer delivery services are set up by small entrepreneurs operating from, for example, a simple boarding house). Net profit is estimated at approximately IDR 5 million per month. The Your Beer is Here delivery service now has 12 employees.
Ban on Sales of Alcoholic Drinks in Minimarkets
Last year, the Indonesian government unveiled Trade Regulation No. 06/M-DAG/PER/1/2015 on the Control and Supervision of Procurement, Distribution, and Sale of Alcoholic Beverages. This regulation prohibits the sale of beverages that have an alcohol content ranging between 1 to 5 percent (so-called "type A alcoholic drinks") in minimarkets and kiosks. Per April 2015 these light alcoholic beverages can only be bought in the (licensed) supermarkets and hypermarkets. However, the new regulation also provides exemptions for the sale of alcoholic beverages for customary uses, tourism, religious rituals, the pharmacy industry, and in places authorized by law.
The government implemented the ban to “protect the morals and culture of Indonesian society” as it had become very easy for schoolchildren or students to buy light-alcoholic beverages (such as beer and breezers) due to the high number of minimarkets and kiosks in Indonesia. Moreover, there exists a negative attitude towards alcohol in Muslim-majority Indonesia as consumption of intoxicants (including alcohol) is generally forbidden (haram). However, as Indonesia contains millions of nominal Muslims (who do not follow Islamic principles strictly), beer consumption had risen in recent years, especially in the urban regions as it had become part of the urban lifestyle.
25 Mar. 2016