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. Bengaluru: City in a Beer Hug
Ankit Agarwal, manager at city pub Tipplers-On The Roof, says, “Nine out of 10 guests opt for beer. Tap beer is the most popular. Afternoon crowd at the pub has decreased by almost half, while our evening customers have doubled.”
Atit S (35), an entrepreneur, says, “Beer is not too much alcohol and it keeps you sufficiently sober. During summer, I tend to socialise more. Beer works best for that.”
Vinayak Malhotra (24), sales manager at a city firm, says, “I usually drink whiskey or rum, but I turn to beer in the summer. It refreshes me. I also love gin and tonic.”
Disha Gopal (23), a merchandiser, says, “There are frequent power cuts in my locality. So my friends and I often find ourselves ending up in pubs and bars to beat the heat. I love guava and mango-based cocktails. I save hard alcohol for the weekends. During the week, I always find myself reaching for a cold beer.”
Close in competition with beer are mocktails, especially mojitos. Vikram Baderya, the owner of Horn Ok Please, says, “Drinking has become a habit and people are not careless with their drinks anymore. The older generation of 40 and above have their particular, regular drinks that they always order but in the summers, they change to vodka-based cocktails, like mojitos, and beer. We offer 30+ pouring brands. But the 18-27 age groups still remain experimental and go in for hard liquor.”
Pratyash Ahuja, 27 and working as an outreach sales executive, says, “I usually prefer whiskey but during summers my drinking comes down and I like to switch to micro-breweries. I also love lemonades and mojitos.”
As the IPL season is going on, the pubs have various offers to lure customers. Kashish Mittal, owner of Loft 38, says, “During summers, footfalls increase by double. Our group parties also increase similarly. But the cricket fans are still hard to lure. We have introduced the special IPL offer of ‘buy 4 drinks and get 2 free’, to get in more groups. We also offer a wide range of ice-blend cocktails.”
Horn Ok Please also offers two attractive IPL offers: Rs 799 for unlimited Kingfisher Premier Beer with two vegetarian and two non-vegetarian starters and ‘buy two 260 ml drinks and get the third free’.
While most pubs observe the increased sales in beer, it is the other way round at Church Street Social. “We observe that our alcohol sales have decreased while our flavoured iced tea sales are on the rise. Seven out of ten customers go in for iced teas instead of alcohol,” says the management.
28 Apr. 2016