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.
More than 76,000 visitors—drinktec 2017 smashes all the records
• Internationality expands again
• The world’s most important innovation and investment platform
With over 76,000 visitors from more than 170 countries, drinktec has chalked up the best-ever result in its 66-year history and surpassed all expectations. The number of visitors rose by 10,000 over the previous event in 2013. In particular at the international level, where drinktec is already very strong as it is, the trade fair was able to grow attendance again, this time by 12 percent. The ratio of visitors from outside Germany thus rose to 67 percent. The number of exhibitors increased to 1,749 from 80 countries—likewise a new record. That is mainly attributable to the wine technology trade fair SIMEI, which was held as part of drinktec for the first time, as well as further growth in the number of exhibitors at drinktec itself.
“World’s most important innovation platform”
In view of these record figures, Dr. Reinhard Pfeiffer, Deputy CEO of Messe München, spoke of an “outstanding result. drinktec has proven itself to be not only the world’s most important innovation platform in the industry, but also the most important investment platform. The cooperation with the wine technology trade fair SIMEI is a tremendous gain. I’m especially delighted that exhibitors here at SIMEI obviously encountered the international audience they expected.”
“The best drinktec ever”
The verdict of Volker Kronseder, President of drinktec’s Advisory Board and Chairman of the VDMA’s Beverage Machinery and Dairy Technology Association, after the five-day fair was also extremely positive: “For me, it was the best drinktec ever. Particularly interesting aspects were that SIMEI was integrated in drinktec for the first time and a new record for the number of exhibitors was set. We were able to achieve a high degree of internationality again, with many high-ranking visitors. This trade fair will give the global beverage and food industry a major boost for the next four years.”
Richard Clemens, Managing Director of the VDMA’s Food Processing and Packaging Machinery Association, was also enthusiastic: “drinktec once again surpassed our high expectations. We’re over the moon at the international spread and expertise of the visitors! drinktec is a trend-setter: Visitors’ focus was on innovative solutions for tomorrow’s applications.”
Ernesto Abbona, President of Unione Italiana Vini (UIV), drew the following conclusion for his association: “We’re very proud that SIMEI has transcended its national boundaries and, together with drinktec, has opened the door to internationalization for our companies. I’ve spoken with a number of our exhibitors over the past days and they all agreed that the trade fair was a success. We were able to address new target groups from the southern hemisphere who we would otherwise probably not have been able to reach. As expected, the grape harvest reduced the number of winemakers who attended from some European and North American countries.”
drinktec exhibitors: “The trade fair to beat them all”
Exhibitors gave a first-class verdict of drinktec 2017, stressing the outstanding importance of the trade fair for the entire industry (see also “Exhibitor testimonials on drinktec 2017”). KHS Chairman, Prof. Dr. Ing. Matthias Niemeyer, regards drinktec as a platform “for the whole industry and experts worldwide. drinktec offers exhibitors perfect conditions for showcasing products and innovations.” Christoph Klenk, CEO of KRONES, spoke for many of his colleagues when he said: “All in all, drinktec is for KRONES the trade fair to beat them all. We’re very satisfied.” In the view of Gianfranco Zoppas, Chairman of SIPA, drinktec is the “benchmark for our industry. We’re extremely satisfied, not only with the number, but also with the quality of our visitors.” Dr. Rainer Brambach from EnviroChemie stated: “drinktec manages to bring together movers and shakers from all over the world—this concentration is unique for us.”
“SIMEI in Munich is a gain”
The fact that interest among visitors for wine, sparkling wine and spirits doubled (the number of mentions rose to 17,480) was mainly due to the exhibition area for SIMEI. This first-ever cooperation between drinktec and SIMEI was also rated positively by exhibitors at SIMEI. Marzio Dal Cin, President of Anformape (National Association of Machinery Suppliers and Products for Winemaking), summed up the feedback from his members who exhibited there as follows: “The impression among SIMEI’s exhibitors is very good for the most part. The presence of many international visitors, in particular from the southern hemisphere, is a very positive aspect and the reason why the companies believe in this project.” Cristina Bertolaso from the company of the same name expressed a similar opinion: “SIMEI in Munich is a gain because it has brought us a lot of new potential customers. We’re ready to conquer new markets.” Carlo Gai, the head of GAI, noted: “Italian wine technology is respected worldwide and we should definitely seize the opportunity to present it to such a large international audience.”
Success for oils+fats—higher attendance from the liquid food segment
The decision to integrate oils+fats, Europe’s only trade fair for the production and further processing of vegetable and animal oils and fats, in drinktec was a resounding success. 49 exhibitors from 16 countries presented themselves in Hall C1. The synergies with drinktec were primarily in the area of liquid food, where often similar machinery and components are used. The combination of drinktec and oils+fats met with a positive response from trade visitors, as also evidenced by the number of visitors from the liquid food segment: an increase from 8,700 to 10,700 or 22 percent.
PRO FachHANDEL, the leading trade fair for the entire German convenience and specialized beverage industry, was also held as part of drinktec 2017 for the first time. As a result, drinktec forged links with the specialized beverage sector.
The top event for visitors from all over the world
In particular the number of visitors from overseas is testimony to the fact that drinktec is a worldwide event and is rightly regarded as the industry’s global economic summit. The number of visitors from China was more than 2,000, an increase of 65 percent. That means China already occupies second spot in the rankings of the top 10 countries of origin for visitors—behind Italy, which likewise recorded a sharp increase thanks to SIMEI: by around 45 percent to 5,240 visitors. There was also a striking rise in attendance from South America. SIMEI apparently helped boost the number of visitors from Argentina to 545 (an increase of 165 percent). 1,100 visitors came from Brazil, a rise of 40 percent. France, likewise a wine country, came fourth this year with 1,800 visitors. Apart from Italy, China and France, other countries in the top ten were Russia (1,857 visitors), the UK (1,619), the U.S. (1,570), Austria (1,567), Spain (1,254) and the Netherlands (1,221).
Top marks for the supporting program
As in previous years, drinktec again earned outstanding plaudits from visitors. Almost all of them (97 percent) rated the trade fair as “excellent to good” and 96 percent intend to return in 2021. The new exhibition areas also went down well. 88 percent of visitors voiced a positive opinion about [email protected] and 93 percent praised the Home&Craft area. The numerous events in the supporting program—the networking platforms, awards, and the conferences and forums—also met with overwhelming approval. Brewers from all over the world were drawn, for example, to Place2beer, an attractive port of call for craft brewers in particular. One-in-five of all brewers who visited drinktec came from that segment. The Innovation Flow Lounge, which was created in 2013 especially for visitors from the fields of sales and marketing, attracted around 1,000 interested attendees from all over the world. The drinktec Forum in Hall A2 was also well-attended, recording around 1,300 visitors.
16 Sep. 2017