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.
World of Beer To Open First International Location In China
"I visited my first World of Beer in Tampa in 2013, and I knew right away Shanghai would be an ideal location to introduce the concept," said Yin. "At that time, the craft beer scene had just started to emerge in Shanghai, and the number of craft beer enthusiasts was increasing quite quickly. Because of this enthusiasm, and World of Beer's proven and successful franchise model, we knew the concept would be a perfect fit."
Yin's company, Zhejiang Suige Trade Company, LTD, will employ about 40 people at the first location, which will be located in the Shanghai French Concession area, a popular shopping and dining district for residents and tourists. The tavern will be similar to U.S. locations with slight variations to the design and menu items will include baby back ribs, Asian-style sesame salad, a variety of dry-rubbed chicken wing flavors suited to the local market and fruit-oriented desserts.
"We've been looking to expand internationally for a couple of years, but we wanted to wait for the perfect partner and ideal location to launch World of Beer's international expansion on the right foot," said Paul Avery, CEO and president of World of Beer. "The new Shanghai tavern demonstrates how World of Beer's devotion to local craft beer and its tavern fare menu translates well across cultures. We are confident that the concept will continue to grow overseas and look forward to introducing our brand to residents in Shanghai and markets such as India and the Philippines later this year."
Since opening the doors to its first location in Tampa, Fla., in 2007, World of Beer has grown to 75 locations in 20 states across the U.S. Last year alone, the company entered several new markets, including New Orleans and Kentucky. Led by veterans of the restaurant and beer industry, World of Beer's leadership team drives the brand's success. The company's executives bring a diversity of knowledge and experience from past roles with organizations such as Outback Steakhouse, Carrabba's Italian Grill, P.F. Chang's China Bistro and MillerCoors. With Avery spearheading the brand's future growth, World of Beer plans to have more than 100 taverns open worldwide by the end of 2016.
25 Mar. 2016