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.
77 percent of Vietnamese men are drinkers: WHO survey
Findings of the latest research carried out by Vietnam’s Ministry of Health and the World Health Organization were announced at a conference on Monday, referring to the hike of alcohol usage and its related crimes and illnesses in the Southeast Asian nation.
According to Tran Quoc Bao, an official from the General Department of Preventive Medicine under the Ministry of Health, 77 percent of Vietnamese men drink beer and other alcoholic beverages.
This ranks men in Vietnam among the world’s top alcohol consumers compared to the average figure of 48 percent across the globe, Bao elaborated.
About 3.4 billion liters of beer was consumed throughout the Southeast Asian nation in 2015, up 50 percent against that in 2010, the official continued.
Nearly 44 percent of male drinkers in Vietnam used alcohol at an alarming rate in 2015 while the ratio was only 25 percent in 2010, he added.
Reports at the conference also showed that Vietnam was ranked second in Southeast Asia, 10th in Asia, and 29th in the world in terms of alcohol consumption.
The excessive consumption of alcoholic drinks in the Southeast Asian country is also evidenced by a drastic increase in alcohol-induced mental disorders, Ly Tran Tinh, former director of the Hanoi Mental Hospital, said at the meeting.
“About 450 to 500 patients are admitted to the infirmary every year to receive treatment for mental illnesses caused by alcohol addiction,” Tinh revealed.
“The youngest among the patients was only 15 years old,” he added.
Aside from people with a poor education, those with a better one have also increasingly become alcoholics in recent years, according to the former director.
A WHO expert even questioned whether Vietnam is a startup country, as the government wants it to be, or a drunk nation considering the statistics, and expressed his concern over the loose policies on beer advertising.
Some stated that national development would be hampered if no certain limitations are imposed on the use of alcohol.
Speaking to the press on the sidelines of the event, Nguyen Huy Quang, head of the Department of Legal Affairs under the Ministry of Health, a draft law on the prevention of alcohol’s negative impacts would be submitted to the lawmaking National Assembly in May 2018.
“The proposed legislation includes a ban on alcohol sales after midnight, which is a highly debatable proposition and would need more flexibility,” Quang said.
Another expert recommended restrictions on alcohol use during business hours and lunchtime.
Meanwhile, Pham Thi Hoang Anh, director of HeathBridge Canada in Vietnam, proposed a higher tax on alcoholic beverages.
According to Tran Thi Thang, Quang’s deputy, there are many legal loopholes in the management of business operations and advertising relating to alcohol.
“The WHO has called on nations to establish policies to minimize the harmful effects of ethanol since 1979,” she added.
28 Sep. 2016