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.
Benedictine roots of beer brands
Benedictines came to Germany from England as early as the VIII century aiming to strengthen the positions of Pope and Christianity. Later first monasteries of this order appeared. Combination of zeal with creativity allowed German monks to create recognizable tastes and first beer brands. And technological breakthrough that happened in brewing was what assisted it.
Historians say that in early Middle Ages Benedictines first began to use hop for brewing beer regularly. Due to hop shelf-life of beer and, accordingly, geography of its deliveries grew. Now it became possible to try products of monastery outside the region where beer was brewed.
To a full degree the advantages of hop were used by brewers in the monasteries of Germany. Conservative Englishmen, rather successful by that time in technology of brewing, to the XV century treated hop with mistrust. Maybe that’s why today not English but German beer became a household name.
Traditionally breweries at monasteries made special beer for sustenance of pilgrims. But that beer, which was generously given to the poor wanderers knocking at the doors of monasteries, could also become a source of income. The Benedictines, providing themselves independently, needed money. As monasteries had active economic and trade life, it is quite natural that having improved technology, they moved from production of beer for their own needs to providing with beer nearby villages and cities, and sometimes even the neighboring regions.
So, according to the document of 1040, the authenticity of which isn't confirmed, the Benedictine bishop was given permission to sell beer brewed in the Weihenstephan monastery on the territory of the city of Freising. These permissions, as well as modern licenses, weren't free, but the brewery, apparently, was not at a loss. Because the company with the name Weihenstephaner is known today as the oldest operating brewery in Germany, though for a long time now it has belonged to the state and not to the Benedictines.
Over time monasteries, paying heavy taxes and receiving preferences from local governors for it, began delivering more and more beer to the market and to build their own taverns, taking away a share of the market from craft brewers. Sometimes the discontent of beer guilds with rapid development of abbey breweries reached such levels that it resulted in revolts. Then the authorities even had to forbid monasteries to sell beer as it was done by the emperor Sigismund in the XV century.
In Germany in 1803 the process of secularization began, that almost destroyed abbey brewing in its original look. Governors of the German states used weakening of Catholic Church during Napoleonic wars to nationalize its property.
At that time there were about 350 abbey breweries in Bavaria alone. And all over Germany, by some estimates, about 500 breweries of various Catholic orders operated. Only some monasteries avoided loss of property or established contractual relations with new owners that allowed them to continue brewing beer. Thus, in the XIX century monasteries stopped playing any noticeable role at the German beer market, though left a huge trace in the history of brewing and in the memory of Germans.