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. Villagers complain of water shortages coused by breweries
At a time when villagers crave for a drop of water, they merrily guzzle underground water depleting the water table. Several firms like Pepsico, United Breweries, Amrut Distilleries, United Spirits and Empee Distilleries, which dot the Kanjikode landscape, consume lakhs of litres of water everyday. Thomas Scaria, district officer of the Groundwater Department, who shared the data collected by the department in the wake of a High Court direction asking Pepsi to pump out only 6 lakh litres per day, said the corporate major used the second, sixth and seventh tube wells.
As per the Scada (Supervisory Control and Data Acquisition) reading recommended by the HC and the Assembly Subjects Committee, Pepsi pumped out 5.76 lakh litres per day in January, 5.25 lakh litres per day in February and 5.97 lakh litres per day in March. ‘’The Kerala HC had in 2007 annulled an order of the panchayat cancelling the licence of the bottling unit in Kanjikode as it was using potable water sources. The court held that the panchayat did not have the powers to issue or cancel licences to industries in special industrial areas as they have been excluded from the Panchayat Raj Act,’’ Pudussery panchayat president Unnikrishnan said.
Focused on Increasing Water Credit: Pepsi
In response to a query by Express, Pepsico said they continue to honour the guidelines of Kerala High Court. “Pepsi simultaneously works on two fronts - first, by reducing our water debit, that is, the amount of water used within our operations and second by increasing our water credit - that is the amount we gave back by recharging and replenishing water through sustainable initiatives in agriculture, within communities and in our plants,” said Pepsico India spokesperson.
However, the court observed that the panchayat’s concern about water shortage should not be ignored as right to life under Article 21 of the Constitution implies the right to food and water. In the wake of the HC verdict, the state government had constituted an expert committee to study the impact of groundwater extraction in and around Pepsi’s unit.
The team comprised the director of the Ground Water Department, regional director of the Central Ground Water Board, director of the CWRDM, Kozhikode, John Kurian, retired chief general manager of Nabard, member secretary of the Pollution Control Board and a member from the Kariavattom University. The committee recommended that Pepsi’s ground water utilisation should be restricted to 2.34 lakh litres per day. The government submitted the report to the High Court in a review petition.
What’s worse, the Malampuzha reservoir which supplies potable water to Palakkad municipality and six panchayats is fast drying up. Strangely, that does not stop supply of water to the brewery units. “The KWA supplies 15,000 to 17,000 kilo litres of water per month from the Malampuzha dam under industrial category to United Breweries which brings in a revenue of `7 lakh per month,” said executive engineer Prakashan. “There is serious potable water shortage in Attappalam, P K Challa, Chullimada, Walayar, Vadakarapathy, Chembna and Kava near Kanjikode. These places rely on tanker lorries for water. There are seven tube wells with 12 inch radius in the Pepsi unit. Currently, the 6th and 7th tube wells, deepest among the lot, are being used,” said Jana Jagratha general secretary P S Panicker.
He said though former Water Resources Minister N K Premachandran had suggested supply of water from the Malampuzha dam under the category of industrial purposes, it was rejected by Pepsi.
“The meters of the tube wells should be sealed as there is chance of manipulation. Each time the seal is opened to take the reading, the elected representatives should be present. Otherwise, such exploitation will result in the land turning into a desert and may even cause earthquakes.”
29 Apr. 2016