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.
Drinktec 2017 is also an excellent marketing platform
There are certainly a handful of breweries and beverage companies, even very successful ones, that consciously do entirely without traditional advertising and still are very successful. Important names such as Augustine, Rothaus and Reissdorf Kölsch, but also Oettinger come to mind here spontaneously. However, they are the big exceptions. The great majority of the companies in the beverage industry cannot do without intensive advertising in this fiercely competitive market. In Germany alone, gross advertising expenditures of breweries were approx. 370 million euros in 2012 according to Nielsen. In addition, sales promotion, marketing at point-of-sales, catering supplies and mobile gastronomy facilities are areas that are relevant for every beverage company. Promoting sales is always the focus for all market players. Sales success is the decisive factor at a POS, whether in traditional gastronomy, mobile outdoor and event catering or trade.
High level of marketing expertise
How can the beverage and liquid food industry best make a product attractive to customers in order to sell it? Decision-makers and those responsible, especially in the fields of PR and marketing, distribution and sales, product and brand managers, all consider such issues and can also obtain information about them at the drinktec technology market, including on marketing topics. drinktec already demonstrated its marketing expertise in 2013. A total of 12,000 visitors came from sales and marketing to drinktec in 2013, of whom more than 3,300 visitors were pure marketing experts. Eighty-seven percent of the visitors assessed the marketing and promotion area as “excellent to good”.
Special comprehensive exhibition areas at drinktec 2017 for marketing, sales promotion and catering supplies as well as packaging solutions (cf. press release of February 19, 2016), including the “World of Labels”, are targeted to the needs of marketing professionals. In the “Special Area New Beverage Concepts”, product and brand managers as well as marketing executives can also see and test innovative ingredients and beverage concepts or search for new ideas at the flavor houses. “The entire Coca-Cola world comes together at drinktec every four years,” Dr. Klaus Stadler, Director Environment & Water Resources Group Europe, Germany, summed up the situation after drinktec 2013. “The technical managers look for new machines at drinktec, and the marketing people look for new ideas from the flavor companies. This meeting of the Coca-Cola family is unique in this form worldwide.”
Innovation Flow Lounge: unique conversation and discussion forum
Sound business decisions are more important today than ever for SMEs. Marketing plays a pivotal role here. How do you deal with the four traditional marketing tools: product and assortment policy, the structure of prices and conditions, the distribution issue and the communication structure? What does your presence on the Internet look like? And what role do social media play? What possibilities are created for marketing and communications, sales, distribution channels and customer loyalty?
The drinktec Innovation Flow Lounge, a conversation and discussion platform unique in this form, provides answers to questions dealing with all issues of marketing and branding beverages and liquid food. How can you influence the buying behavior of customers, and what happens at the point of sale? What marketing opportunities are created by new packaging concepts and ideas? How do you position innovative products in new markets? Visitors to drinktec can discuss these topics and lots more with high-level speakers and discussion partners in the Innovation Flow Lounge. There are various action modules from the “Talking Table” to “Speakers Corner” for sharing ideas and networking.
“Of course, there are many other fairs, repeatedly and at various schedule intervals, but what is happening at drinktec in Munich at larger intervals is truly unique. drinktec provides a unique overview of a truly international industry event,” Günther Nessel stated, Managing Director of “taste! Food & Beverage Communication”, Offenbach. “You should absolutely take a look at it if you are marketing professional who is involved in these sectors; you can consolidate your expertise and obtain inspiration there. Whoever looks for specific topics can find interesting forums with lectures and discussions, including with renowned industry representatives, from which you can learn a thing or two.”
11,000 square meters for catering supplies and sales promotion
drinktec 2017 has reserved an entire hall with 11,000 square meters for the topics of catering supplies/restaurant equipment and sales promotion. The exhibitors offer a wide range of advertising materials and solutions for sales incentives at the POS. The large glass manufacturers also show their latest creations. Visitors can also find commercial dispensing systems, home beverage dispensing systems, cellar tank systems and the required accessories. drinktec 2017 provides a comprehensive overview of market activities in this area and comes up with innovative technical solutions for catering companies and equipment suppliers as well as restaurants. A large exhibition area covers mobile dispensing equipment, sales facilities and vehicles as well as tent systems and sunshades. Catering specialists can obtain extensive information there, because outdoor restaurant seating is usually a strong revenue generator for the brewing and beverage industry when temperatures rise in the summer. “We were particularly expressed by the fact that many international decision-makers were at the trade fair,” Michael Mäusl emphasized, Managing Director at Hümmer Advertising GmbH, Germany, after the last drinktec. Many new customers approached us with inquiries. drinktec is the optimum platform for our goal to generate new customer contacts and cultivate existing ones, and consequently it is extremely significant for us.
Successful sales, effective marketing and the brand image of beverages and liquid foods are essential factors for success in an industry that is faced with high price sensitivity, a large variety of products and limited shelf space in concentrated retail trade. Consequently, promotional items, POS solutions, effective external and internal advertising, brand-oriented catering supplies and forward-looking marketing strategies are important issues for those who are responsible for marketing, product and brand management or sales via distributive trade and the catering industry. At drinktec 2017, you can obtain support for issues such as optimizing marketing, positioning issues, advertising and sales promotion. This is because drinktec 2017 focuses on the areas of marketing and sales promotion and consequently specifically targets managers and staff from market communication, marketing, distribution/sales, management and customer relationship management.
30 Mar. 2016