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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.

China. Yanjing Beer taking measures to cope with the recession in the industry

According to the National Bureau of Statistics of China, the decline rate of beer production has slowed down. Over the past few months, the negative index has stabilized at the level of 4%.

Management of Yanjing Beer believes that breweries will confront the consequences of the economic crisis in the short term, however, the further consumption growth is possible through the rural and western regions of China.

Yanjing Beer continues to promote fresh unfiltered (white) beer the market share of which is growing. The company tries to keep a moderate pricing policy. The sales of unfiltered beer were growing rapidly and therefore the price of a 500 ml can of beer at a store has reached 13 million yuan, and 50 yuan for 0.5 liter of beer at pubs and bars.

Unfiltered beer was so successful that thera are hopes in Yanjing  that it will surpass standard sorts of beers in the medium price segment. The company expects that its market share will reach 80%. Meanwhile, it is 50-60%. The production capacities of this beer are located in Beijing, Guangxi, Fujian Province and other provinces.

In recent years, there has been very high competition and low consumer loyalty to brands in the market of Guangdong. The share of Yanjing Beer in this region declined to 10%. Therefore, the company intends to improve the quality of product and level of service and to take all measures to increase customer loyalty.

19 Янв. 2016

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