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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.

SABMiller expands in Nigeria to take on Heineken

Brewer SABMiller is to spend over $100 million to build a new brewery in Africa's second largest beer market Nigeria to take on the country's brewing heavyweights Heineken and Diageo.
Africa's biggest brewer said on Tuesday it will build its new brewery on a greenfield site at Onitsha in southeast Nigeria, to expand its presence in the country after buying small beermaker Pabod Breweries Ltd in 2009.
Nigeria's annual beer market of around 18 million hectolitres is second only to South Africa on the continent and is dominated by Heineken, with around a 70 percent market share, and Diageo's Guinness business with over 20 percent, leaving SABMiller a share of less than 5 percent.
The fast-growing Nigerian beer market has grown at an annual rate of 9 percent in the last 10 years and Heineken acquired controlling interests in five breweries in January to expand its capacity there by nearly a third .
The SABMiller new brewery will produce local brands Grand Lager and Eagle and also Castle Milk Stout and will have an annual capacity of around 500,000 hectolitre of beer and malt beverages, and be able to bottle water and other beverages.
SABMiller Africa - which is 62 percent owned by SABMiller and the rest by privately owned drinks group Castel - will own 80 percent of the new business with the Anambra state government and other Nigerian investors holding up to 20 percent.

2 Mar. 2011

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