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.
drinktec. Closing Report
° Top decision-makers from all over the world – a full turn-out
° Around 60,000 trade visitors from 170 countries
° Proportion of international visitors rises to 55 percent
° Exhibitors: "Life is coming back into the sector"
drinktec 2009 has gathered together the top decision-makers in the international beverage and liquid food industry in Munich and in doing so has given the sector renewed impetus. "Virtually all the CEOs and Presidents from companies around the world turned out here," was the unanimous opinion of the exhibitors, all of them praising the "extremely high" quality of the visitors. Intensive talks were held at many stands, laying the foundations for upcoming investment decisions; many of the exhibitors reported they had signed up business agreements at the fair. Even though the climate as regards investment is still cautious, drinktec 2009 has marked a turnaround in decision-making.
drinktec confirmed its reputation as the world?s most important business and information platform for the sector in impressive style. It is the world 'summit' for the beverage and liquid food industry – in this, too, exhibitors and visitors alike were agreed. Volker Kronseder, Chairman of Krones AG and President of the Advisory Board of drinktec 2009, described how he saw the mood in the halls: "People are no longer paralysed with shock, life is coming back into the sector." It is a view he shares with many of his colleagues in the sector. Menno Holterman from Norit also sees light on the horizon after drinktec 2009. "There?s more appetite for investment again, so long as the ROI is right. We have signed up a number of contracts."
"Quality not quantity"
Wherever you looked in the twelve exhibition halls at the fair, the general picture was one of interested professionals from all parts of the globe, seeking out innovations, finding out about machinery and plant, and conducting intensive business talks and negotiations in the exhibitors? offices and in the VIP lounges. In all areas of the exhibition the emphasis was on cost-saving and sustainable solutions. At the stands it was clear that visitors from outside Germany were in the majority. "There was a noticeably high number of visitors from China, India, Japan and Latin America," was how Marcus Ley from Ecolab put it, for example. He summed up: "Quality not quantity" – this assessment was one often expressed by the exhibitors, when commenting on the quality of the visitors.
Proportion of international visitors rises to 55 percent
A glance at the visitor numbers confirms the picture seen in the halls. In terms of international representation, drinktec was able to expand still further, from an already high level. 33,000 trade visitors journeyed to Munich from abroad; they came from a total of 170 countries. This again significantly raised the proportion of international visitors to 55 percent. There were particularly strong rises in visitor numbers from China, India, the US, South Africa, Mexico and the United Arab Emirates, and from South America and Africa. In terms of visitors from Germany, however, the figures reflected the expected fall. Around 27,000 visitors in total came from Germany. Overall, over the six days of the fair, the trade fair attracted around 60,000 visitors.
"Melting pot of the beverage industry worldwide"
In terms of the exhibitors? assessment, the drop in the number of German exhibitors played only an insignificant role. The critical factor for them, as regards the success of their participation in the fair, was visitor quality and the fact that the visitors came from all parts of the world – this was the overriding view of the exhibitors. J?rgen Henke, Marketing Manager at the GEA Group, summed up the event as follows: "You can?t measure the success of a fair on visitor numbers alone. drinktec is the key communication platform for our sector, it is the melting pot of the beverage industry worldwide. This is where we all meet up."
Exhibition Management: "Overall very satisfied"
For Messe M?nchen GmbH, the organiser of drinktec 2009, Managing Director Norbert Bargmann, drew the following conclusion: "Overall we are very satisfied. In the run-up to drinktec we, too, had to contend with the global economic crisis. Nevertheless we have succeeded in bringing the top ranks of the beverage and liquid food industry to Munich – and that is the critical thing for the exhibitors. The high number of visitors from outside Germany, and the very broad spread of countries they represent, shows just how highly regarded drinktec is around the world. This is the place to meet up, this is the place to agree contracts and it is the place to prepare for new business. The drop we have seen in German participation is due primarily to budget cuts and the resulting limitations on business travel. Yet, from Germany, too, all the key players in the beverage and liquid food industry were represented, but no longer with the same size of team."
Top marks from the visitors
In terms of visitor satisfaction, too, drinktec was able to make further gains from an already high level. The representative survey of visitors, conducted by TNS Infratest, turned in top results across the board. Almost all the visitors (96 percent) to drinktec 2009 described the event as "excellent to good". 95 percent of the visitors gave this same top ranking to the breadth and depth of the range of exhibits. And 91 percent of the exhibitors regard drinktec as the leading trade fair for the sector.
High expectations of future economic development
The successful course of drinktec 2009 has awakened high expectations on the part of exhibitors and visitors as regards future economic development. Their optimistic statements are reflected in the results of the survey. Accordingly, 64 percent of the exhibitors and 56 percent of the visitors expect the economic situation to improve. This is considerably more positive than expectations after drinktec 2005.
Trade forums – a magnet for the trade audience
The supporting programme to drinktec was extremely well received by the trade audience. The two trade-fair forums in Halls B1 and A2 turned out to be a real magnet. Independent experts from all over the world gave lectures here on subjects covering the whole process chain, from manufacture, to filling and packaging of beverages and liquid food, as well as on issues concerned with marketing. Further highlights in the supporting programme were:
° The presentation of the 'Beverage Innovation Awards', in Oscar-style, at a gala event.
° The two-day fruit-juice congress 'International Fruit World' (IFW) on the subject of liquid fruit and fruit processing.
° The PET World Congress, held for the third time, which tackled all the relevant issues in technology and marketing.
° The presentation of the first-ever Dairy Technology Awards, for the successful implementation of innovative technology.
Success for oils+fats
Attracting 2,600 visitors (2008: 1,200 visitors) from over 90 countries (2008: 58 countries), the third oils+fats, International Trade Fair for the Production and Processing of Oils and Fats made from Renewable Resources, celebrated a great success. The number of visitors attending the event more than doubled since last year. oils+fats took place in parallel with drinktec, between 16 and 18 September.
The next drinktec takes place from 16 to 21 September 2013.
This closing report will be available in Spanish, Italian and French from Tuesday, 22 September, at: www.drinktec.com
This press release is also available at: http://www.drinktec.com/link/en/22320991#22320991
Photos of drinktec 2009 can be downloaded from: http://media.messe-muenchen.de/drinktec/Standard_e/SelectCatalog_Presse.jsp
Statements from exhibitors and visitors are collected together in Press Release no. 46 at: http://www.drinktec.com/link/en/22318779#22318779
An analysis of the exhibitor and visitor survey is contained in Press Release no. 48.
Your press contacts for drinktec 2009:
Johannes Manger and Christina Maier
Tel. (+49 89) 949-20630, Fax (+49 89) 949-20689
[email protected] / [email protected]