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.
Shangri-la first Chinese brewery to win European Beer Star medal
Going from start-up to award winner in under two years was a difficult process for the brewery, but Gyalzur believes the effort has been well worth it, saying, "It proves that hard work pays off in the end and that quality is the most important thing". Making the award more impressive is the fact that this year a record 2,103 beers from 44 countries were entered for judging. According to Oliver Dawid, CEO of Private Brauereien Bayern, which has been organizing the competition since 2003, "This year it was was more difficult than ever to win a medal".
Jury selections at European Beer Star are made by a panel of 124 experts who individually assess each beer in a blind tasting. Scores in 57 beer categories are awarded based on sensory criteria including color, flavor, aromatic profile and overall impression. This year, the jury was made up of master brewers, beer sommeliers and acknowledged beer connoisseurs from 30 countries. Together, they chose Black Yak — which is characterized by caramel malts providing hints of chocolate and roasted coffee beans — as the overall number two in its category. Of the award, Gyalzur told GoKunming:
In general, the win is proof that even in a remote place like Shangri-la, you can produce quality products like our beer, and that the craft scene in China is moving in fast-forward. For our company, I hope that we can show not only China, but the rest of the world, that there is a craft beer brand from Shangri-la that is good and worth trying.
The impetus for starting Shangri-la Beer began in 2009, when Gyalzur first traveled to his family's home in Yunnan and visited an orphanage run by his mother. Coming from a real estate background in Switzerland, he decided to instead open a restaurant to give back to the local community. As part of his mission, he worked to employ and train former orphanage residents. With business booming, customers soon began asking him if any beers were made locally in Shangri-la. That was when Gyalzur decided to open a brewery that would use local ingredients.
With cooperation from the local government, Gyalzur was encouraged to open a much larger, officially licensed operation. After much planning and research, the Shangri-la Highland Craft Brewery (香格里拉高原精酿啤酒) officially opened on June 20, 2015, becoming China's first-ever fully licensed craft brewing company. In line with Beijing-issued health and bottling permits, the facility was required to have the capacity to produce up to 18,000 bottles per hour, a bit of a step up from Gyalzur's original plan.
However, the enormous investment in both time and resources has paid off. Not only are Shangri-la beers now available in major cities across China, but the company is also preparing to expand into North American and European markets soon. The European Beer Star award should do nothing but speed up this process. For Gyalzur, the journey has been a group effort. "The award means a lot to me and my team. It shows we shouldn't listen to this and that, but just move forward with what we think is best. Winning the silver medal is awesome," he said.
10 Nov. 2016