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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. Indy Brewer Expands South

Indianapolis-based Sun King Brewing Co. will begin offering its products to the Bloomington area starting in April. The expansion comes after the company last year invested in a new 30-barrel system at its Indianapolis brewery.

Dave Colt and Clay Robinson knew that there was demand in Indianapolis for Fresh•Local•Beer, they just didn’t know how much.
When the brewer/owners of Sun King Brewing Co. took possession of a used 15-barrel JV Northwest brewhouse in winter of 2009, Colt and Robinson believed that it would be five years before they hit full brewing capacity. One year and 5,000-plus barrels of beer later, the five-year business plan was in tatters and the brewery was scrambling to keep up with demand. So the decision was made to tear out the brewhouse and invest in a new 30-barrel system as well as additional fermenters and bright tanks (where beer is stored before sale).
The added brewing capacity will allow Sun King to better service metropolitan Indianapolis and expand its footprint to include the Bloomington area, where Sun King will be available on tap and in cans in April 2011.
“Bloomington has been supporting craft beer for a long time and we knew we couldn’t enter that market half way,” said Robinson. “It took us a year and a half to get to the point where we could distribute in Bloomington without neglecting our existing accounts in Indianapolis.”
Fittingly, the tanks where that Bloomington-bound beer will be fermented and stored were purchased from Bloomington-based Poynter Sheet Metal.
“Our community has supported us and when Poynter approached us about making tanks we thought it would be a great way to help a Hoosier company compete with manufacturers around the world,” said Robinson.

1 Feb. 2011

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