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.
In early Middle Ages incipient beer brewing was a science, in which it was still necessary to find correct decisions and systematize experience. Only the clergy could do it, because there was nobody else - peasants and artisans could not read. Besides, monks were able to choose the best from a great number of beer recipes, because despite ascribed dogmatism, they were more used to dissert upon rightfulness of decisions than other social classes.
Monasteries were the centers of knowledge accumulation that were a sum of opinions and quotations – like a Google of Middle Ages, according to an expression of philosopher B. Groys. Church school of Scholasticism assisted the study of all this experience, and studying Aristotelian logic developed critical thinking. In addition, as well as in a modern scientific environment, there was an experience exchange with brothers from other monasteries that advantageously distinguished monks from artisan brewers.
Then how did it happen that today less than a hundred abbey breweries operate in all of Europe, and their role at the beer market is very insignificant from the point of view of sales share? In particular, remaining breweries at Catholic monasteries are a weak echo of their past and in no way remind about their dominance at the beer market. There were several reasons for it.
At first survivor abbey breweries were destroyed or changed owners under the influence of powerful motion of Protestant Reformation and the Thirty Years’ War, which limited the role of Catholicism in Europe.
Thus, peasants, warmed up by Christian ideas of Reformation, and experiencing the burden of constantly growing duties, started setting up generally fair claims to reduce taxes, including for the church, and to abolish serfdom. The reaction of feudal lords was inadequate which triggered Peasant war, continuing 1524-1526, mainly in the southern regions of Germany. However the revolt was severely suppressed and one of its sad results was devastation of many monasteries.
Thirty Years’ War 1618-1648 was a more extensive ordeal as it aimed the Holy Roman Empire itself and virtually divided Europe by the religious affiliation. The losses of civil population and economy were vast, especially on the territory of Germany. And again monasteries with their stocks and households became an easy prey for soldiers and they were ravaged during the attacks.
The secularization* of church property by Napoleon and his allies in 1803 that resulted in destruction of church’s leading role in Europe, including in the field of brewing was still another disaster for Catholics. Most abbey breweries were "resocialized" too, although some of them were later returned one way or another into possession of church.
* Secularization withdrawal of something from the church property and transferring it into the civil property
Finally, with Renaissance and subsequent bloom of natural sciences, brewing went out on a qualitatively new level; the monasteries could no longer house it.
Today we observe a new wave of revival of abbey brewing, connected with interest to piece products, and beer spiritual and historical background. Not the last role is played by a desire to help a monastery financially in its existence and development.
Interest in abbey beer is used by commercial brewing companies as much as possible. Although up to a hundred monasteries are involved in brewing one way or another, in the total sales of beer with monasterial attributes, brands that do not have a direct relation to church undoubtedly prevail.