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.
GEA CRAFT-STAR™ exhibit will ship to brasserie in Northern France
Brasserie du Pays Flamand, a French brewery on the border region with Belgium, will take possession of the GEA CRAFT-STAR™ displayed at drinktec 2017 at the conclusion of the trade fair. A similar system, shown at the 2017 Craft Brewers Conference in Washington, D.C., was delivered to actor Kelsey Grammer’s Faith American Brewery after that event.
Participation in drinktec caps off a very successful year for GEA specialty brewery sales. The company will have received several new orders for GEA CRAFT-STAR™ and COMPACT-STAR™ craft brewhouses just following last year’s BrauBeviale. Orders have come from around the world and include sales in Russia, Hong Kong, South Korea, South America and the Caribbean. In Europe, Britain’s Fourpure Brewing will soon be using GEA equipment. And in the United States, Diageo recently signed a contract for a complete GEA brewery featuring a GEA COMPACT-STAR™ that will brew Guinness Blonde, a fast growing brand. Five CRAFT-STAR™ plants have been commissioned thus far in 2017.
“The craft beer market has matured," says Oliver Jakob, who is responsible for the GEA brewhouses that meet the needs of the thriving craft industry. “The boom is now global and the requirements are becoming increasingly tough. At GEA, our technology provides brewers with the ability to create high quality beer with reliable consistency. It’s what the market is looking for and it’s what we deliver.”
GEA CRAFT-STAR™ the right solution for craft breweries
“The CRAFT-STAR™ is ideal for medium-sized specialty breweries with batch sizes of 40 hectoliters (35 barrels) hot wort. We offer 2, 3 or 4 vessel configurations with a mash tun kettle, lauter tun and combined whirlpool/wort kettle or an additional whirlpool, allowing for seven brews within 24 hours," explains Oliver Jakob. The CRAFT-STAR™ is pre-assembled and tested in Kitzingen as a compact ‘plug & play’ system with process piping, instrumentation and an automatic control system. On-site commissioning takes just a few days. The brewhouse is a cost-efficient alternative to standard brewing systems and is without compromise in terms of technological quality.
Lots of mash, hops and versatility
"The interplay of ingredients is vital to craft beer. Today’s craft beer trends include everything from higher grist loads, original gravity levels of up to 21 degrees Plato, unusual aroma additives, late hopping and dry hopping," notes Oliver Jakob. “Automation is vital, as results need to be reproducible once the recipe has been finalized. Our craft brewhouses are designed to make life easier for brewers, yet not rob them of their individual craftsmanship.”
As craft brewers tend to use large amounts of special high-quality malts, extract efficiency is essential to the brewhouse system. An extract yield of up to 98% makes the CRAFT-STAR™ lauter tun a leader in this discipline. GEA technology has also found a solution for achieving high hop yields that are vital for hoppy IPA beers. Here, the CRAFT-STAR™ combines a whirlpool for trub separation and a wort kettle in a single unit. GEA engineers have designed a system that ensures highly efficient boiling, keeping wort losses as low as possible. A trub dam retains hot trub, which is particularly critical for strongly hopped worts. This way valuable wort can be processed down to the very last drop.
GEA COMPACT-STAR™ the next step up in craft brew technology
Used as a base to develop the smaller CRAFT-STAR™ brewhouse, the COMPACT-STAR™ is intended for medium breweries with cast out volumes of 40 to 115 hectoliters (35 to 100 barrels) and annual capacities of up to 350,000 hectoliters (300,000 barrels). Up to twelve brews a day are possible, depending on the equipment and vessel configuration. This is more than conventional brewhouses. That’s because GEA overcomes technological bottlenecks in the lauter tun with a fully automated MILLSTAR™ wet grist mill.
Because the COMPACT-STAR™ has pre-piped vessel modules, it can be installed in as few as fourweeks. The system is designed to take up minimal space in the brewhouse. Positive experiences with GEA technology have led to expansion in several breweries. This includes Argentina's leading craft brewer, Cerverceria Antares.
The GEA CRAFT-STAR™ 3-vessel brewhouse on display at drinktec was built for French customer Brasserie du Pays Flamand in Blaringhem in the Départment Nord located between Lille and Dunkirk. Oliver Jakob is delighted with the partnership: "We are extremely proud of this sale. Brasserie du Pays Flamand is among the best brewers in the country. In 2016, their new creation Anosteké Saison won the World Beer Award in the Pale category.
“At another French customer, Brasserie Castelain from Bénifontaine, southwest of Lille, we commissioned a COMPACT-STAR™ brewhouse expansion. This brewery is a pioneer in the French craft movement and has become a true fixture of the country’s beer scene.”
Oliver Jakob explains: “The French are active in the craft beer segment. This is not surprising as their roots are in wine, where the art of fermentation and flavoring are of significant importance. These culinary crafts are uniquely applicable to craft beer brewing where the French place a high value on specialty products.”
Special triple hop “GEA brew” by Brasserie du Pays Flamand to be served at the trade fair
Brasserie du Pays Flamand will display their creativity at drinktec. Prior to the trade fair, they will brew a beer using three different types of hops – G for Galaxy, E for Ekuanot and A for Ahtanum – a “GEA” craft beer based on a Session IPA. Visitors are welcome to come taste the “GEA Triple Hop” at Hall A3/Stand 313.
GEA at the drinktec: Hall A3/Stand 313
7 Sep. 2017