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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.

Plze?sk? Prazdroj announces its sales results for 2010

Dramatic increase in excise tax in January 2010 in combination with difficult economic conditions resulted in decline of the overall beer market. Plze?sk? Prazdroj was no exception to this trend* and its sales domestically and aboard declined by 6% in annual comparison. Total sales of Plze?sk? Prazdroj on the domestic and international markets reached 9.9 million hectoliters of beer in 2010. On the domestic market Prazdroj maintained the market share on annual basis, with sales of 7 million hl, down by 8% in line with the expectations of the overall market trend*. Exports of Prazdroj’s traditional Czech brands grew by 6% to 0.8 million hl despite challenging conditions. Volumes from licensed production were down by 5%, at 2 million hl.
Doug Brodman, Managing Director of Plze?sk? Prazdroj, comments the full year performance:
“Throughout whole year consumers have been facing uncertainty and economic pressures. The 33% excise tax increase on beer in combination with lower disposable income resulted in weakened consumption. Last year sales were also adversely impacted by lower on-trade traffic and the overall soft performance of draught beer in pubs and restaurants, which was further deepened by lower tourism. Despite this, share of our super-premium portfolio with flagship brand Pilsner Urquell grew. On international markets, we have managed to tackle the adverse situation and grew our exports year-on-year. “
Following a high growth two years ago, the 11-degree segment has continued to enjoy popularity, despite the overall market decline. The ‘elevens’ reported a moderate growth of 1%, underpinning the stable trend of premium beers. Mainstream brands sales were down mainly as a result of softening consumer demand in the on-premise channel.
Plze?sk? Prazdroj launched a number of novelties last year, such as Master 15° Gold or Birell Semi-Dark. In packaging innovations, the Master special beer range gained much interest and generated a double-digit percentage growth in sales, also thanks to the bottle variants. The malt drink Frisco achieved a high growth in sales as well and the non-alcoholic beer Birell recorded a solid single digit growth. As an attraction for pub and restaurant visitors, the offer of beers on tap has been enhanced by seasonal unfiltered variants of the traditional Czech beers Pilsner Urquell, Gambrinus, and Radegast.

EXPORT

In adverse economic conditions, Plzensky Prazdroj managed to increase export by 6% selling to more than 50 foreign markets. Brand Pilsner Urquell enjoyed popularity on foreign markets, increasing volumes by 5% annually. Velkopopovick? Kozel performed well, exporting to about thirty markets, representing an excellent 28% growth for the brand.

FUTURE

In the upcoming year 2011 Plzensky Prazdroj will develop activities to contribute to the stabilization of the beer market and further development of Czech beer culture.

17 Feb. 2011

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