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.
Carlsberg forays into high-end segment of Vietnam’s beer market with Tuborg
Carlsberg Vietnam will spend VND450 billion ($20.2 million) on its marketing programme for Tuborg, which is the number one beer brand by volume in Carlsberg Group’s portfolio. Accordingly, public relation (PR) girl teams will go to restaurants to introduce the new product. It is considered an important part of the marketing programme, helping Tuborg to penetrate the Vietnamese market.
According to Tayfun Uner, Carlsberg Vietnam’s general director, Carlsberg Vietnam has been planning to launch Tuborg in Vietnam since 2015. With the slogan “Open for fun”, Tuborg represents a dynamic and pioneering lifestyle.
Along with the VND450 billion ($20.2 million) marketing programme, Carlsberg Vietnam also spent $1 million on the bottle design. Accordingly, the unique packaging design includes an easy-to-use pull-off cap.
According to Carlsberg Vietnam’s representative, the company is trying to make Tuborg become one of three most favourite beer brands.
Phan Chi Dung, director of the Ministry of Industry and Trade's Light Industry Department, told VIR that Tuborg used to be produced in Vietnam 20 years ago, but Carlsberg failed to popularise the Tuborg brand here.
According to the Vietnam Beer Alcohol Beverage Association (VBA)’s statistics published in January, as of 2015, there were 129 beer companies and facilities with a total capacity of 4.8 billion litres per year. In 2015 alone, the figure stood at 3.4 billion of litres.
Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) is the largest beer manufacturer with a 2015 capacity of 1.38 billion litres. The runners up are Heineken with 729 million litres and Hanoi Beverage-Wine-Beer Joint Stock Corporation (Habeco) with 667.8 million litres, respectively. Carlsberg ranks fourth with 229 million litres.
According to expert opinion, Carlsberg have to try its best to enhance its position in the high-end beer segment because Heineken has planted a solid foot here.
Tuborg is the number one beer brand by volume in Carlsberg Group’s portfolio. It is currently present in more than 70 countries and territories around the world. In Vietnam, a bottle of Tuborg’s price at retail stores is between VND13,000 ($0.58) and VND15,000 ($0.67).
18 Apr. 2016