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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.

Brazil’s Ambev to invest $1.5bn in new factories

Ambev, Brazil’s biggest brewer, promised to invest up to R$2.5bn in new factories and distribution centres this year in spite of concerns that the country’s slowing growth could hurt beer sales.
The S?o Paulo-based company, a subsidiary of Anheuser-Busch InBev, posted a 26 per cent rise in net profits to R$7.56bn from R$5.99bn in 2009 on a 9 per cent rise in net revenue to R$25.23bn.
However, volumes slowed in the fourth quarter and could continue to slow this year as a result of heavy rains and the effects of recent price increases, the company said on Thursday.
Jo?o Castro Neves, chief executive, also expressed caution about efforts by Brazil’s government to tame inflation through more conservative spending.
“There are some pros and cons (for 2011),” Mr Castro Neves told analysts and reporters on Thursday. “A clear pro for 2011 is the low unemployment figure – the lowest we’ve ever had in Brazil.”
But he added that the government’s decision not to deliver any real increase to the minimum wage this year could put people off spending more on beer or the company’s other offerings, such as Pepsi and the popular Guaran? soft drink.

8 Mar. 2011

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