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. IPA: the beer for the British imperial arsenal?
The common refrain goes that troops stationed in India didn’t enjoy the warm, heavy porter-style beer being shipped from England, and wanted something lighter and easier to drink during those hot Indian summers. George Hodgson’s Bow Brewery “answered the call” of the soldiers, creating the first IPA, which he packed with hops (supposedly to protect the beer from souring) and would lose some of its harsh bitterness after several months at sea. He also brewed the beer at a much higher ABV than usual, again to stave off infection and keep its flavor during the journey.
While tidy, this tale is not entirely accurate. Enter Martyn Cornell, a British beer historian who has often made note of the entirely trumped up nature of the origin story of one of the world’s most popular beers. According to Cornell’s blog post “Four IPA Myths That Need To Be Stamped Out For IPA Day” (which occurs every August for those wishing to celebrate), Hodgson didn’t necessarily invent a new style insomuch as he produced a beer that was long-sent to British territories and received credit for creating a new style. British troops in Asia drank “porter in India right through to the end of the 19th century,” and most of the pale ales exported to India were actually consumed by the middle and upper classes among the expats in India. The IPAs of the time were not particularly strong, and any time export beers were being sent somewhere warm they were highly hopped. Ergo, while Hodgson often gets the credit, the variety he “created” existed in some form well before his version of IPA made the trip east.
But like every good tale, there is a grain of truth in the most commonly known story. That truth is found primarily in the extremely well researched book IPA: Brewing Techniques, Recipes and the Evolution of India Pale Ale by Stone Brewing Company Brewmaster Mitch Steele. Steele talked to several beer historians and homebrewers about the IPA, and found that the beer’s history, although still debated, has some commonalities with the lore. In the early 1700’s brewers gained a new malt variety in their arsenal, the pale malt. Kilned with coke as fuel, the pale malt increased efficiency and created a higher-quality beer, while also giving the beer a lighter color and a less smoky flavor. October Beer, one of the beers said to be the precursor to the IPA, which uses fresh malt and fresh hops, uses 100% pale malt in its recipe, and was expected to age for two to three years before serving, due to its strength.
Here’s where our myth and reality start to come together. As beer began to be sold for export by British brewers to British territories around the world, George Hodgson “developed a business relationship with the officers of the East India Company,” and therefore was able to get a near monopoly in the Indian market. This reinforces Cornell’s argument that Hodgson got credit for the style even though his beer was similar to the kinds of beer that were already going to India. Hodgson didn’t create a new beer. It just so happened that his October Beer was popular among the 18th Century gentry that settled in India, and the beer generally held up well on the voyage, thereby tasting good upon arrival.
So next time you’re sipping on an IPA, be thankful it didn’t take months to get to you, and enjoy the crisp bitterness of a classic beer style.
2 Jun. 2016