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. Freshly brewed beer remains a dream for Delhi
Small breweries and craft beers have gained popularity over the past decade across the country.
Neighbouring Gurgaon’s micro-breweries have been drawing business from across the National Capital Region as Delhi and Uttar Pradesh are yet to get their own.
Delhi allows micro-breweries to be set up, at least on paper. But, none have come up in the 10 months since the Aam Aadmi Party government issued a public notice allowing hotels, restaurants and airports to set up micro-breweries with the capacity to produce 1,000 litres of draught beer per day.
The Excise Department notified the policy in June last year, but the “brewery and potable spirits” figure on the list of “prohibited/negative list of industries” in the Master Plan of Delhi-2021. The Delhi Development Authority would need to make an amendment to the list to allow micro-breweries.
Sources in the government said that the policy had been sent to the DDA, but there had been no progress. Senior DDA officials, meanwhile, said they were not aware of the policy.
They did not want to be quoted in order to avoid getting drawn into the tussle between the AAP government and the Centre.
The DDA answers to the Union Government’s Urban Development Ministry.
Also, Delhi’s Excise Commissioner Sanjay Kumar and Deputy Commissioner (Excise) Praveen Mishra both declined to comment.
Restaurateurs, who had been lobbying the government to allow micro-breweries, say that other States went around this by defining micro-breweries as not being covered under the existing zoning norms.
Prakul Kumar, secretary-general of the National Restaurant Association of India, said that though it was taking long, the industry was waiting for the policy to be implemented on ground.
“We have to be patient. The government has its own procedures. It has been a long haul, but there are people who are eagerly waiting to set up micro-breweries as Delhi is losing that business to Gurgaon,” said Mr. Kumar.
The Excise Department, however, gave a licence to the IGI Airport to set up a micro-brewery in July 2015. Airport officials say the project is still in the works.
The municipal corporations, which issue health trade licences to restaurants and bars, also seem to be clueless.
Ashish Sood, Leader of the House of the South Delhi Municipal Corporation, said: “We have not received any file from the government on micro-breweries. The AAP is pushing its anti-drugs and alcohol agenda in Punjab, but encouraging alcohol in Delhi.”
That being said, the AAP government wasn’t the first to come up with this proposal. The Sheila Dikshit government had also proposed changes to the excise policy to allow micro-breweries in hotels.
Ms. Dikshit told The Hindu that her government’s policy ended up getting some backlash. “We had decided to allow micro-breweries in hotels. There was support, but there was also a lot of criticism. We decided to hold it off till there was consensus,” she said.
She added that the AAP government had expanded the policy to include restaurants and hotels, but lacked details. “What kind of hotels are they talking about? Can those with 10 rooms also apply? What about restaurants? Is there a minimum criteria,” asked the former Chief Minister.
With the authorities mum, the policy to allow micro-breweries appears to be forgotten for now.
12 Apr. 2016