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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. Market expansion creates opportunities for craft brewers

The expansion of the craft beer industry will mean not only more beer but more breweries.
Page Buchanan is spending $300,000 to transform a 4,800-square-foot space at 4539 Helgesen Drive on Madison's East Side into the House of Brews, believed to be the first Community Supported Brewery in the country. He hopes to begin brewing this spring.
In Wisconsin Dells, Bruce McPhee and Tanner Brethorst, of Madison plan to open this spring a 7,000-square-foot brewery in an industrial park at 805 Business Park Road. Plans call for 500 barrels of beer in the first year and about 1,500 barrels by the third year. The brews would be distributed in kegs and bottles to area restaurants, bars and liquor stores and be available on tap in the brewery's small tasting room.
The Ale Asylum on Madison's East Side is also looking for new and bigger digs. The brewery and a small restaurant, located in an 8,000-square-foot space near Madison Area Technical College, has seen production grow from 850 barrels in 2006 to 7,200 barrels in 2010.
Co-owner Otto Dilba expects the brewery to make about 9,000 barrels this year but by 2012 he wants a larger facility capable of brewing 35,000 to 50,000 barrels. "Ideally, we want a location where we can start out smaller and grow into it," Dilba said. "There's so much room for growth."

15 Feb. 2011

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