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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.

UK: Beer exports up 24% in 2010

As newly published Government figures show an impressive leap in Britain’s beer exports, British Beer & Pub Association Chief Executive Brigid Simmonds says that the iconic sector can help towards an export led recovery, and now is not the time to load extra tax burdens on British brewers.
Despite the tough economic climate, beer exports were up by 24% in 2010, increasing in value to over half a billion pounds (?544 million), according to the new HM Revenue & Customs export data. The rise equates to 230 million extra pints of British beer exported.
However, the BBPA is warning that Government plans for huge beer tax rises in the Budget on 23rd March would be a major blow to further growth, investment and innovation in a sector on which over 70,000 UK jobs depend, which has witnessed a huge growth in the number of breweries in recent years.
BBPA Chief Executive Brigid Simmonds comments:

“These huge increases in beer exports are something to proud of. There is nothing to match the unique taste and variety of British beer, and overseas beer drinkers clearly have a growing taste for it. With UK exports so vital to our economic recovery, the huge growth in the number of breweries in Britain means we are sowing the seeds now for the British export champions of the future.
“However, punitive new taxes from the Government, which plans a seven per cent tax in beer duty this March, will hold us back. We need a climate that encourages the innovation and investment that will ensure future export growth. Huge rises in beer taxes will have the opposite effect.”


UK Beer Exports 2009: 5,486,368 hl

UK Beer Exports 2010: 6,797,422 hl

Increase: 1,311,054 hl (up 24 per cent)

Value of Exports: ?544 million (up 18 per cent)

1 hectolitre equals 176 pints. Exports will include intra-company trade.

The British Beer & Pub Association is the UK’s leading organisation representing the brewing and pub sector. Its members account for 96 per cent of the beer brewed in the UK and own nearly two thirds of Britain’s 52,500 pubs.

According to a study published in February by Oxford Economics for the BBPA, 72,000 UK jobs depend on the brewing industry and a million jobs on beer and pubs as a whole.

The BBPA submission on the Government’s Budget plans and proposed Beer Tax rises, is available on the BBPA website. Key highlights:

•            Scrapping plans for above inflation duty increases would save over 10,000 jobs (Oxford Economics)

•            Freezing duty would generate up to ?40 million in extra tax revenues.

•            The recent VAT rise will encourage drinking at home, and results in the loss of over 8,000 beer-related jobs.

(Source: British Beer & Pub Association)

10 Mar. 2011



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