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. Booze brawl between politicans in Dehli
Deputy chief minister Manish Sisodia said prohibition in Delhi would serve no purpose if people could find it in other states; conversely, he said that his government had no intention of earning revenue through the sale of liquor. "A section is deliberately misleading people and trying to create a wrong perception about the government. Since we have come, the number of liquor shops has actually reduced as many MLAs have got liquor shops closed down in their constituencies on complaints by residents," he said.
The debate was started by AAP MLA Pankaj Pushkar who wanted to know how many licences had been issued by the government in the past one year. "The government has given powers to mohalla sabhas to decide on closure of liquor shops, but is there a Bill for this? Will existing licences also come under the purview of this order?" asked Pushkar before leaving to join a Swaraj Abhiyan-organised public hearing on the closure of a liquor vend in Karawal Nagar.
BJP's Vijender Gupta also accused the government of promoting alcoholism in the city, saying that licences issued in the past one year have been twice that of the previous year. "The government was also promoting microbreweries which are yet to take off, thanks to DDA," he said and walked out with the other BJP MLA Jagdish Pradhan.
Sisodia, who shared details of licences issued by the government, said with reference to L-6 (issued for the opening of retail vends of Indian liquor and beer in the public sector) that in 2014-15, 380 licences were issued and 386 each in 2015-16 and 2016-17.
Gupta countered that the number of L-12 licences (for retail vend of beer and wine in department stores) had gone up from 74 in 2014-15 to 118 in 2015-16 and 136 so far this fiscal.
"In L-1, which is issued for wholesale vends of Indian liquor, the number of shops has come down from 78 in 2014-15 to 73 in 2015-16. How can anyone say that our revenue is doubling from liquor? The only increase in revenue is through the government's attempts at curbing corruption, by preventing theft of revenue. The proposal for microbreweries is also old but microbreweries exist in Haryana, which has a BJP government. We would like to know whether BJP has a policy to control liquor sale," said Sisodia.
The minister also said that the involvement of politicians in liquor shops should also be probed.
24 Aug. 2016