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.
New, shorter running time. drinktec now a five-day event
drinktec 2009 was a six-day event taking place in September last year. While there was much activity in the twelve exhibition halls on the first five days of the fair, visitor numbers dropped noticeably on the Saturday, the last day of the fair. At its constitutional meeting the Advisory Board agreed unanimously with the proposal of the exhibition management that the running time of drinktec be shortened by one day, from six days to five days. A number of reasons have prompted this move:
° After the fair, the exhibition management of drinktec carried out a quality management check, part of which involved gathering individual feedback from exhibitors. The findings were clear: almost all the exhibitors were in favour of dropping the Saturday opening.
° For the great majority of the exhibitors, a shorter running time means a more efficient presentation at the fair.In addition, when it comes to transporting the stand equipment away at the end of the fair, it is then possible to avoid the Sunday ban on truck movement which applies in Germany.
° A clear trend is developing in which visitors to specialist trade fairs are less and less prepared to spend the Saturday at the fair.
° At drinktec there is the added difficulty that the Saturday now being dropped has always been in competition with the first day of the Oktoberfest.
"The Saturday was in the end an anachronism, quite simply it no longer fits into modern trade-fair practices," explained Dr Reinhard Pfeiffer, the Managing Director at Messe Munchen responsible for drinktec. "Together with our exhibitors we are
confident that shortening drinktec to five days is the right decision. Visitor traffic will now be distributed evenly over the five days of the fair. The Friday will now of course take on the role of the last day of the fair, but it will still be a very important day for the visitors, and one they will not want to miss."
drinktec is the world’s leading trade fair for beverage and liquid-food technology. It is the most important trade fair for the sector. Manufacturers and suppliers from all over the world – global companies and SMEs alike – meet up here with all the key producers and retailers of beverages and liquid food products. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. The fact that the entire production chain is represented at drinktec emphasizes the fair’s role as the world’s leading trade fair for the sector. Manufacturers come along to present the latest technology for producing, filling and packaging beverages of all kinds, as well as liquid food – including raw materials and logistics solutions. A special feature of drinktec is that entire machinery systems and plant are set up here and demonstrated in action – this kind of a display is unique to drinktec. drinktec 2009, which took place at the New Munich Trade Fair Centre from 14 to 19 September 2009, attracted 1,402 exhibitors from around 72 countries. On the six days of the fair approximately 60,000 trade visitors attended, over 33,000 of them from abroad. They came to Munich from over 170 different countries.
This press release is also available on the internet, at:
Messe Munchen GmbH
drinktec Press Office
Johannes Manger and Maritta Dotter
Tel. (+49 89) 949-20630, Fax (+49 89) 949-20689
[email protected]/ [email protected]