Pivnoe Delo
abbey-beer-icon

pivnoe-delo_logo5

Top articles

Journals

4-2017

Global hop market

A 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 Russia

Germany 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.

Pub closures have hit the Guinness brand in Great Britain

Net sales of Guinness in Great Britain dropped 2% for the six months to 31 December 2010 on last year as more pubs closed and the shift from on-trade to off-trade volumes continued.
Guinness brewer Diageo said that although its Guinness Surger off-trade brand achieved distribution in a further 9,500 outlets, it was not enough to offset the “continued contraction of the on trade with, on average, 29 outlets closing each week”.
Guinness marketing spend was down as the brand switched its sponsorship programme from the rugby premiership to the Six Nations and international rugby.

Smirnoff dip
Overall in Great Britain, Diageo saw net sales up 1% with volumes down 1% for the period — a performance it classified as “moderate net sales growth achieved as the economy continued its fragile recovery”.
Net sales of Smirnoff dropped 16%, attributed to “stock building in fiscal 2010 ahead of the anticipated duty increase in the emergency budget in June and a loss of share in the on trade”.
Margin was also eroded on Smirnoff as "price conscious consumers in the off trade bought more on promotion" rather than in the on-trade.
Net sales of Baileys grew 2% fuelled by its “Let’s do this again” campaign. Net wine sales grew 18% due to a price increase on Blossom Hill and strong sales of its higher value wines.
Marketing spend increased 3% with investment in Smirnoff up 4%, focused on its “Nightlife Exchange Project” and its tie up with Coca-Cola.

Momentum
Globally, the drinks giant reported organic net sales growth of 4% with organic marketing spend up 10%. Organic operating profit grew 2%.
“Momentum is building in our business,” said chief executive Paul Walsh. “Our top line performance was stronger and price/mix improved.
“We have increased marketing spend significantly, up 10%, but in a very focused way. 35% of the increase was behind strategic brands in US spirits to build the brand equity as we move away from promotional support and over 60% of the increase was on our brands in the faster growing emerging markets.
“Despite the economic weakness in much of Europe, our first half performance gives me increased confidence that we will improve on the organic operating profit growth we delivered in fiscal 2010.”

10 Фев. 2011

Advertising

pilsena_en
gea
sidel100x100
jg
portinox

Main topics

Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Search in posts
Search in pages
Search in groups
Search in users
Search in forums
Filter by Custom Post Type
Filter by Categories
Home
Magazines
News
×