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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.

US. Demand For Craft Beer Boosts Local Brewery

Demand for locally-produced beer is growing across the country, and here in the Mid-South it's fueling the expansion of a brewery in Memphis.
"We need to increase our refrigeration space, and increase our production capabilities in terms of extra boilers, more fermentation tanks, so we have more time and space to age the beers," said Chuck Skypeck, founding partner of Ghost River Brewing.
The brewery churns out 100 kegs a week, Skypeck said. Expansion will double production to 10,000 kegs a year.
"That extra 5,000 kegs we're brewing will go into 12-ounce bottles rather than into kegs," Skypeck said. "So that opens up a lot of new markets for us."
He said the growing demand for locally-produced beer bucks national beer consumption trends, and has kept Ghost River busy filling orders for 110 bars and restaurants in Memphis and northern Mississippi.
"There are 1500 breweries right now in the United States," Skypeck pointed out, "and most of those are small local breweries like Ghost River. The market for craft beer nationally has grown as much as 9 percent, even in the face of the face of the recession and declining beer sales nationally. Our sales were up 40 percent last year."
He said craft beers and local breweries "are finally starting to resonate with our customers."
"People are beginning to realize that craft beer is a local product," Skypeck said. "Just like the drive for locally-grown vegetables and locally-raised beef - people are beginning to realize ‘hey, freshness makes a difference in beer too.'"
29 Jan. 2011

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