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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.

China. Tsingtao Brewery plans to build overseas plants

Tsingtao Brewery, China's largest beer brewer, said on Thursday it is planning to build more factories overseas.
Jin Zhiguo, president of the Tsingtao Brewery Co Ltd, said the company will build more factories in the overseas market to increase sales and facilitate its overseas expansion. But Jin didn't give more details.
The largest Chinese beer exporter opened its first overseas manufacturing plan in Thailand four years ago.
In 2010, Tsingtao Brewery sold 6.3 million kiloliters of beer, an increase of about 7 percent year-on-year. The company now exports to more than 70 countries and regions. From 2006 to 2008, Tsingtao Brewery was ranked as the world's sixth largest brewer.
According to China Economic Times, China Resources Snow Breweries, Tsingtao Brewery, Anheuser-Busch InBev and Yanjing Beer accounted for a combined 58 percent of China's beer market in terms of sales. All told, their profits accounted for 72.5 percent of those of the industry in 2010.
The Chinese market has become more competitive as more international brewers stepped up their effort to tap the Chinese market through mergers and acquisitions. Carlsberg spent 238.5 billion yuan on a 12.25 percent stake of Chongqing Brewery in September 2010. The deal came six months after Asahi Group purchased a 19.99 percent stake of Tsingtao Brewery.
"The competition is fierce in China and what Tsingtao can do is to learn the from our competitors," Jin said.
On rising grain prices, Jin said they will surely increase the cost of making brewing. But "we will streamline our process and reduce the overall costs", he said.
Jin made the remarks at the sidelines of the annual session of the National People's Congress, China's top legislature. Jin is a deputy to the National People's Congress.

11 Mar. 2011



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