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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.

Another Milestone for Heineken in Mexico

Heineken today announced that it reached another important milestone in Mexico, less than a year after the acquisition of Cuauht?moc Moctezuma (CM) as part of the FEMSA beer operations transaction. The new developments include the brewing of the Heineken® brand in one of CM's most modern, high-tech breweries located in Orizaba, Veracruz, as well as the introduction of new, innovative bottle and can designs for the premium Heineken brand.

Over the past few years, the company has successfully developed the Heineken brand in the Caribbean region and in Latin American countries such as Brazil, Argentina and Chile. The company is now poised to do the same in Mexico, the world's fourth largest beer profit pool and a market that is expected to show ongoing incremental volume growth in the coming years.

Commenting on today's announcement John Nicolson, Heineken Americas Regional President, said: "The premium segment is currently a relatively small and underdeveloped part of the Mexican beer market, but it is growing fast as popularity for premium brands among consumers continues to increase. Our decision to implement this new stage for the Heineken brand in Mexico is an exciting development for our business which, together with our established distribution network and portfolio of other leading international and local brands, creates a strong platform for future growth in the region."

The Heineken brand will now be available in Mexico in unique embossed long-neck bottles and in innovative cans featuring tactile inks. The new packaging designs will be showcased in a print campaign in up-market magazines and in outdoor advertising on premium locations that both capture the cosmopolitan nature and international heritage of the brand. This will be amplified by consumer activations that build on the brand's sponsorship of the UEFA Champions League.

In addition to the Heineken brand, Cuauht?moc Moctezuma brews and markets, among others, the Tecate, Sol, Carta Blanca, Indio and Dos Equis beer brands.

Editorial information
Heineken is one of the world's great brewers and is committed to growth and remaining independent. The brand that bears the founder's family name -- Heineken -- is available in almost every country on the globe and is the world's most valuable international premium beer brand. The Company's aim is to be a leading brewer in each of the markets in which it operates and to have the world's most valuable brand portfolio. The Company operates 140 breweries in more than 70 countries and sold 205 million hectolitres of beer on a 2010 pro-forma basis. Heineken is Europe's largest brewer and the world's third largest by volume. Heineken is committed to the responsible marketing and consumption of its more than 200 international premium, regional, local and specialty beers and ciders. These include Amstel, Birra Moretti, Cruzcampo, Dos Equis, Foster's, Kingfisher, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. On a 2010 pro-forma basis, including FEMSA Cerveza, revenue totalled EUR 17 billion and EBIT (beia) was EUR 2.7 billion. The average number of people employed is more than 70,000. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. Most recent information is available on Heineken's website: http://www.heinekeninternational.com.

14 Mar. 2011

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