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.
Indonesia’s alcohol ban plan: Creeping Islamization or social ills solution?
A bill seeking to prohibit the sale and distribution of booze, as well as the consumption of drinks with alcoholic content between one and 55 percent, was last year put forward by two Islamist parties – the United Development Party and the Prosperous Justice Party.
But a failure to achieve unanimity among legislators and concerns raised by affected stakeholders have left the proposal hanging, with the House of Representatives still debating the issue, according to reports.
If the ban in enforced, however, it may still include exemptions for travelers, customary activities, and religious rituals.
Outside of tourist-friendly cities and islands, the Muslim-majority country is generally conservative – alcohol is already banned in the province of Papua and the port city of Surabaya in Java.
While many attribute the proposal to Islamic hardliners, the ban proposal could well be the result of concerns over alcohol-related health problems and social ills.
Ross Taylor, president of the Western Australian-based Indonesia Institute, told news.com.au that banning alcohol in Indonesia had support beyond conservative Islamist groups.
“There’s a lot of people in Indonesia right now taking the view — and they might not be wrong — that if you look at the Western world, and what alcohol is doing to young people, we don’t want that in Indonesia and we want to ban alcohol,” he said.
The push for the ban was likely further fueled by the gang rape and murder of a 14-year-old schoolgirl from Bengkulu, Sumatra in April, which was perpetrated by 14 young males reportedly high on ‘tuak’ (palm wine).
If the bill is passed and enacted into law, Hindu-dominant Bali in particular would be the hardest hit – the resort island is a mainstay holiday destination for tourists looking to have fun on the cheap, and obviously booze is a major part of that.
Should alcohol be taken out of the equation, however, those reliant on visitors for their livelihood are worried that their main source of income will dry up.
Taylor added: “In Bali, especially, there’s a very strong feeling that it’s the last thing you’d want to do, because if tourists can’t have a beer or wine on the beach, the potential consequences for tourism are going to be very severe indeed.”
Speaking to the Jakarta Post, Indonesian Hotel and Restaurant Association (PHRI) head Hariyadi Sukamdani said: “If the bill is passed, our business will be done. The tourists, who mostly come from Europe, drink alcohol all the time. It will be very inconvenient for them if they can’t find alcohol.”
According to Hariyadi, even recent efforts to regulate the distribution of alcohol has had a negative impact on businesses, while foreigners have complained about how difficult it has become to find alcoholic drinks.
“No matter how beautiful the country is, if they can’t find alcohol, they won’t want to come here,” he said.
There are also those who predict that if the ban is implemented, it would only backfire and cause an increase in the demand and consumption of contraband booze, which could pose health risks.
- “The problem, of course, is if you ban [alcohol], you then create this enormous black market and it causes a whole lot of other problems.” – Indonesia Institute president Ross Taylor
Last year, after Indonesia prohibited the sale of alcohol at mini markets and small sundry shops, the country saw a 58 percent spike in illegal alcohol sales, including ‘oplosan’ (Indonesian bootleg liquor) and other home-brewed drinks, reported the Sydney Morning Herald.
Due to the lack of regulation in alcoholic content, this has led to an increase in cases of tourists dying or ending up hospitalized after drinking illegal alcohol laced with potentially lethal amounts of methanol.
A spokesperson for the Association of British Travel Agents (ABTA) warned that banning legal alcohol sales could have the “unintended effect” of exacerbating the problem of illegal alcohol consumption.
“Rather than banning alcohol entirely, the Indonesian authorities should continue to crack down on the sales of illegally distilled alcohol containing methanol, which has caused the deaths of a number of holidaymakers and local people over the years,” they said, as quoted by MailOnline Travel.
Liquor sellers have pleaded with the government to consider imposing tougher controls on the sale of alcohol rather than a blanket ban.
Leni, 50, a member of Communication Forum of Indonesia Alcohol Drinks Sellers, told the Jakarta Post: “I don’t mind regulations. But don’t apply a total ban because it will kill my business. If you want to regulate selling, I would be ready to comply.”
The nation’s beer sellers have also argued that the drink should be exempted from the ban, as it was not linked to poisoning cases.
Despite the apprehension caused by the proposal, there are those who believe that an outright nationwide ban would not be implemented.
“In my view, I think that nationally, the bill won’t get up. I don’t think in the Indonesian government there’s enough support for it,” said Taylor.
“Moderation is a better way to go because they need tourists to go to Indonesia and tourists having a glass of wine or a Bintang [Beer] won’t do any harm.”
However, he added that individual provinces with more uncompromising governments may go ahead with the ban.
In 2015, it was reported that up to 10.41 million tourists visited Indonesia.
17 Aug. 2016