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.
1,600 exhibitors to take part in the “World´s Leading Trade Fair for the Beverage and Liquid Food Industry”
In September 2017 drinktec will be able to boast the biggest participation figures in its over 60-year history. Around 1,600 exhibitors are expected to take part in the “World´s Leading Trade Fair for the Beverage and Liquid Food Industry”, taking place from September 11 to 15, 2017 in Munich. With the integration of SIMEI, the world´s leading international trade fair for winemaking and bottling technology, total hall space taken up by drinktec rises to over 150,000 square meters.
drinktec is the world´s leading trade fair for the beverage and liquid food industry, and as such it is the biggest global gathering of this sector—a kind of world summit. From small, family-owned firms to global players, anyone who has anything to say in the sector is putting on a presentation at drinktec 2017. The exhibitors represent the entire process chain: from the manufacture, filling and packaging of beverages and liquid food through to marketing—raw materials, beverage ingredients and logistics solutions included. Specifically drinktec 2017 encompasses the following main exhibition sections: process technology; containers/packing materials; filling and packaging technology; raw materials/ingredients; process automation; energy systems; PET technology; restaurant and catering supplies and equipment; sales promotion and marketing.
Innovations showcase and spectacular displays
drinktec is regarded as a platform for innovations. The latest solutions and entire systems are presented in Munich for the first time—and this is a unique selling point of drinktec. This trade fair is renowned for the spectacular displays put on by its exhibitors at their booths. Nothing is too much trouble for them when it comes to making a big impression with the global trade audience. For example, entire filling and packaging lines of all kinds (from low-tech to high-tech) are set up in the halls, bottles run past on conveyor belts, innovative PET bottles are produced live—just like in a real industrial set-up. And all of this is on view and in operation for trade visitors on all five days of the fair.
In 2017, for the first time, SIMEI will be an integrated component in drinktec (see also the press release on this dated August 6, 2015). Organized by the Unione Italiana Vini (UIV), “[email protected]” will have its own dedicated area in Halls C2 and C3. The spectrum of products and technologies on show at drinktec is therefore now expanded to include all areas of wine technology. This creates a globally unique platform for the international wine industry, covering not only the wine business, but also enabling visitors to look beyond their own particular field, and experience what´s new in other segments, such as the beer industry. For the exhibitors at drinktec, around 60 percent of whom also offer solutions for the wine industry, SIMEI is a chance to reach even more potential customers. And in return, the exhibitors in [email protected] can present their offerings to a global trade audience. SIMEI retains its two-year cycle, but its venue will alternate in future between Italy and Munich.
oils+fats – Home&Craft
Hall C1 at drinktec is shared with oils+fats, Europe´s only specialist trade fair for the oils and fats industry. Here, fifty exhibitors will be presenting their systems, components and auxiliary materials for the production and processing of edible oils, fats and lubricants—along with raw materials and quality control solutions. Also in Hall C1 is a new exhibition section called “Home&Craft”, which features technology and products for home brewing and microbrewing. Rounding off the displays in Hall C1 is a range of product-specific and cross-industry process technology for the beverage and liquid food industry.
Taking place for the first time as part of drinktec 2017 is PRO FachHANDEL, the leading trade fair for the German specialist trade in beverages and convenience products. PRO FachHANDEL will take up Hall B0 and the foyer of the ICM – Internationales Congress Center München, which is adjacent to the Messe München exhibition center. This trade exhibition is an opportunity for international beverage manufacturers attending drinktec as visitors to find the right trading partners for their entry into the German market. As such PRO FachHANDEL is an ideal enhancement to the offering at drinktec.
Over 70,000 trade visitors from all over the world
More than 70,000 trade visitors from all over the world and from all areas of the beverages industry will be coming to drinktec 2017. Around two-thirds of the visitors come from outside Germany. drinktec addresses the entire industry: trade professionals from the soft drinks and fruit juice industry, from brewing, from mineral water producers, dairies, the wine and sparkling wine segment, from the spirits industry, and from beverages wholesale and retail businesses. Employees from manufacturing and production make up the biggest proportion of visitors, closely followed by plant managers and CEOs. Representatives from marketing and sales have also discovered the attractions of drinktec and come along to learn about all the latest developments and trends. In 2013 this group of visitors numbered 12,000, and in 2017 that figure is expected to rise.
The key themes at drinktec 2017, which are covered in all the exhibition halls and affect almost all sections, are: energy and resource efficiency, water and energy management, hygiene and product safety and process optimization/flexibility (see also the press release on this at www.drinktec.com).
Highlights from the supporting program
• Special Area New Beverage Concepts, Hall B1: In a special exhibition area in Hall B1 manufacturers of sweeteners, colorants, ingredients, additives and flavorings, treatment agents and recipes will be presenting their new products and solutions. The “Special Area” has an open and interactive design. Product developers, brand managers as well as marketers and buyers will be able to try out new ingredients and beverage concepts at the bar, and also search the flavor providers for new ideas.
• Innovation Flow Lounge (IFL): Following its highly successful premiere in 2013, the IFL will be continued in 2017, but with a new concept: High-caliber experts will discuss the topical themes of importance for the future of the industry in the areas of product innovation, packaging and marketing. IFL and the Special Area New Beverage Concepts will have a joint space at the show, so that topics from the area of new beverage concepts, such as beverage ingredients and ideas, are also addressed and dealt with in the IFL. The IFL is targeted at product, brand and innovation managers, as well as decision-makers and managers in the fields of marketing and sales. Thanks to the interactive concept with various action modules, exchange and networking are always in the foreground, for example also at the Beverage Innovation Bar.
drinktec Forum: The Forum in Hall A2 is dedicated on all five days of the fair to key issues affecting the future of the sector. Independent experts from research and industry will be giving answers and presenting pioneering approaches and practical solutions. The focus is on themes to do with technology, production processes and automation. In cooperation with the Zentralverband Deutscher Milchwirtschaftler (German Dairy Professionals Association) the last day of the fair is dedicated to the theme of milk. There will be simultaneous interpretation (German-English) of all the lectures. Also in the Forum, on the Monday, is the careers day for the beverage professionals of tomorrow: [email protected]
• place2beer: This is the further development of the Brewers’ Meeting Place, which celebrated its successful premiere at drinktec 2013. At drinktec 2017 the place2beer in Hall B1 is sure to be a big magnet for brewers, beer lovers and all those who have anything to do with beer. And there will be plenty on offer for them here: Beer lovers can taste, free of charge, beers from all over the world and find out about the latest qualities in hops, malt and yeast, while inspecting or trying out the products for themselves. Successful brewers will tell their stories and present their beers at a live tasting. And start-ups will be presenting their innovative ideas to the international trade audience for the first time. In addition, William Reed Business Media will be organizing lectures and panel discussions on themes such as food and beer, women and beer, popular styles of beer, packaging and branding, and lots more.
• Competitions and award ceremonies: drinktec 2017 also features many competitions and award ceremonies. On the day before the start of the show, the World Championships for Beer Sommeliers will take place. The organizer is the Doemens. Also, the best beers from all over the world will be fighting it out for the title of “European Beer Star”, a competition organized by Private Brauereien Bayern e.V. (an organization of private breweries in Bavaria) and being held at drinktec for the second time. Also presented at drinktec are the “Beverage Innovation Awards” for creative and innovative ideas. The organizer is Foodbev Media.
15 May. 2017