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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.

Plzensky Prazdroj to open a new PET bottle line

Plze?sk? Prazdroj will be investing CZK 150 million in a new PET bottling line at its Plze? brewery. The line will be located in Prazdroj's Plze? brewery in the current packaging hall, and its maximum capacity will be 18,000 bottles per hour. The investment is expected to be completed and the line commissioned during the course of the year. This investment in a packaging line is a response to the changing requirements of Czech beer drinkers for convenient containers in the off-trade segment.
"We have our consumers at heart, and we would like to meet their needs. As their preferences change and the demand for convenient packaging grows, we are putting into operation a new plastic packaging line in the Plze? brewery as part of our long-term investments in the development of our business. Our brew masters make top quality Czech beers, and our goal is to offer consumers top-quality packaging, both in traditional returnable glass bottles and in the new convenience packaging. Our consumers deserve the best beer experience, and we are committed to delivering one," said Douglas Brodman, Plze?sk? Prazdroj CEO.
Plze?sk? Prazdroj is providing consumers with Klasik and Primus brands in the PET bottle.

Notes:
- With total sales of 10.5 million hectolitres in 2009 (including licensed production abroad) and exports to more than 50 countries around the world, Plze?sk? Prazdroj is a major beer producer in the region and the largest exporter of Czech beer.
- Plze?sk? Prazdroj, a.s. is a member of the group SABMiller plc. Pilsner Urquell is the international flagship of the SABMiller brand portfolio.
- SABMiller plc is one of the world's largest brewers, with brewing interests or distribution agreements in over 60 countries across six continents. The SABMiller brand portfolio consists of international brands such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as almost 200 other successful regional and national brands. Outside the U.S., SABMiller is one of the world's largest producers and distributors of Coca-Cola products.

SABMiller Plc.

15 Feb. 2011

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