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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.

China. Anheuser snags Henan brewer

Anheuser-Busch InBev, the world's largest brewer, has acquired China's Weixue Beer Co, the second largest brewery in Henan Province, a move analysts said shows AB InBev's clear-cut strategy for expanding its presence in the world's largest beer market.
AB InBev inked a deal with Weixue Beer on Monday to acquire Weixue Beer's intellectual property rights including its two trademarks "Weixue" and "Jigongshan," assets and business, AB InBev said in a statement e-mailed to the Global Times Wednesday.
Acquired Weixue breweries include Xinyang brewery, Zhengzhou brewery and Gushi Brewery. The transaction is subject to the customary approvals under Chinese law, the statement said.
Though the financial terms of the acquisition were not disclosed yet, sources familiar with the matter said AB InBev was expected to pay at least 530 million yuan ($80.77 million) in the deal.
AB InBev was created in 2008 when Belgium's InBev bought US brewer AB InBev. It now runs 33 breweries in China across 13 provinces and manages over 25 beer brands including Budweiser, Harbin and Sedrin.
Established in 1982, Weixue Beer made its name in Henan Province for its two brands "Weixue" and "Jigongshan," and reported sales of 150,000 tons last year.
The brewer accounted for 10 percent of the market share in Henan Province, second only to Jinxing Beer Co which makes up 30 percent of the market in the province, data from SOCIET Insight & Decision consulting company showed.
The deal comes on the heels of AB InBev's announcement in November that it planned to invest 2.7 billion yuan($ 412 million) to build a brewery in Xinxiang, Henan Province. "This deal is part of our plan to strengthen our presence in Henan Province ... while increasing our market share in the north," the AB InBev's statement said.
Meanwhile, Kirin Holdings Co said Monday it has agreed to sell its entire 25 percent stake in China's Dalian Daxue Brewery Co to AB InBev.
Ma Fei, a market analyst at the Henan-based Nine Degrees Marketing Research Agency, told the Global Times that the 530 million yuan($80 million) deal showed AB InBev's strategic deployment in one of China's largest beer markets.
"Weixue is a well-established local brand. It's unlikely for the AB InBev to give up the Weixue brand, and instead, it will use Weixue to compete with other local brands in the low-end market; the Harbin brand to boost its presence in the middle-end market and Budweiser to consolidate its control of the high-end market," he said. "China's brewery market will be increasingly dominated by monopolistic giants in the future," he added

13 Mar. 2011

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