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.
Hurdles loom for alcohol prohibition bill in Indonesia
Indonesia's House of Representatives is likely to miss the deadline for wrapping up its deliberation of the alcohol prohibition bill this year as lawmakers are caught up in fierce discussion on the scope of the proposed regulation and its potential impact on businesses and the general public.
After a two-week break, lawmakers are back in Jakarta this week to start their third sitting period for the year, during which they will continue deliberating dozens of priority bills from the 2016 National Legislation Program (Prolegnas), including the controversial alcohol prohibition bill.
The bill, sponsored by Islamist-oriented parties the United Development Party (PPP) and the Prosperous Justice Party (PKS), has returned to the table after all 10 party factions agreed last year to continue its deliberation.
The bill, reminiscent of US prohibition efforts in the 1920s, would outlaw the production, distribution and sale of beverages of more than 1 per cent alcohol content.
The bill has sparked widespread debate, including protests from alcoholic beverage producers, tourist industry players and local community leaders, who argue that the prohibition would drive tourists away and debase local traditions.
Despite being the world’s largest Muslim-majority country, Indonesia has a number of local traditions and rituals that involve the consumption of alcohol, including some in East Nusa Tenggara and on the resort island of Bali.
PPP lawmaker Mohammad Arwani Thomafi, who leads the House’s special committee for deliberating the bill, said lawmakers were still divided over the substance of the bill.
“There are parties that highlight the importance of a prohibition [and] there are parties that say alcohol consumption should be allowed with some exceptions, for example, students, or within school [grounds],” he said on Monday.
The fierce debate on the scope of the proposed prohibition is likely to end up at some sort of compromise, Arwani said.
“It is likely that the bill will allow the production of [alcoholic beverages] with very detailed limitations,” he said.
Earlier this week, publicly listed beer manufacturer PT Delta Djakarta, local producer of big beer brands including Anker, Carlsberg and San Miguel, expressed anxiety over the anticipated approval of the bill, saying that the move was likely to hamper its sales as it comes off a slow recovery after a rough 2015.
PT Multi Bintang Indonesia, the country's largest brewery and maker of the world-renowned Bintang Beer, has put a break on expansion plans because of uncertainty created by the bill.
Before being taken to a plenary meeting to receive final approval and get passed into law, a bill must be scrutinised by lawmakers in House’s commissions or in a special committee set up to deliberate it.
Nationalist parties, like the ruling Indonesian Democratic Party of Struggle (PDI-P), the Golkar Party and the Gerindra Party, have not shown any particular resistance to the alcohol prohibition bill.
Speaking to The Jakarta Post on Wednesday (May 18), Gerindra lawmaker Aryo Djojohadikusumo, a member of the special committee for this bill, admitted that the discussion was a “tough” one.
The committee, for example, is still debating whether to drop the name of the bill and change it to “the alcohol control and supervision bill”.
“The word ‘prohibition’ is not in accordance with our Constitution,” he said, arguing that if the current bill were passed into law it would be annulled by the Constitutional Court.
19 May. 2016