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. Maharashtra govt under pressure to stop water supply to breweries in Aurangabad
For now, the water works department decided on 17 April to cut water supply to industrial units in Marathwada by 10% and to the breweries and distilleries by 20% till 30 April. Aurangabad district collector Nidhi Pandey told PTI that the government would review the situation on 30 April and decide the future course.
The official quoted earlier said the department has asked the Aurangabad divisional commissioner to submit a report this week on allocation of water to each category of consumers, including the breweries. He admitted that the government was under immense pressure to stop water supply to the beer industry.
The opposition Congress and ruling alliance partner Shiv Sena have called for stopping supply to the beer and liquor industry in Aurangabad. On Monday, Congress workers in Aurangabad staged demonstrations against water supply to beer and liquor producing units. On Sunday, Shiv Sena president Uddhav Thackeray made a similar demand, saying supply to the beer industry could not be a priority when people were getting drinking water once every three days in large parts of Marathwada.
Ashish Garde, president of the Chamber of Marathwada Industries and Agriculture (CMIA), said all industrial units in Marathwada located on the estates developed by the Maharashtra Industrial Development Corporation (MIDC) get 4 million litres of water per day from MIDC. “This includes the breweries and distilleries. We do agree that the water situation has turned quite grave but stopping supply to industries in times of drought will be counterproductive because the industry provides jobs to people rendered jobless by drought,” Garde said. Aurangabad has 16 breweries and distilleries, including foreign brands like Carlsberg and SABMiller, and Indian brand United Breweries which produces Kingfisher beers.
The water works department official said the government was not in favour of stopping the supply. “Having said that, such demands win immediate popular support and forces the government to act, as happened in the case of IPL (Indian Premier League),” the official said. An NGO has filed a public interest litigation against holding IPL matches in drought-hit Maharashtra, claiming that watering of grounds consumed 60 lakh litres of water. Last week, the Bombay High Court asked the Board of Control for Cricket in India to move matches after 30 April out of Maharashtra.
“Manufacturing has already been hit by water cuts and there should not be any populist decisions to make it worse,” Garde said. He added that the CMIA was trying to find out how many industrial and ancillary jobs get created for consumption of every litre of water. “Even the government and people making such demands should do this data analysis,” he said.
19 Apr. 2016