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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. A-B InBev Inks Agreement For Weixue

Belgium-based global brewing giant Anheuser-Busch InBev (A-B InBev) has entered into an agreement for the acquisition of China-based Weixue Beer Group. The deal includes the acquisition of Weixue's namesake brand and three breweries located in Xinyang, Zhengzhou and Gushi. According to an A-B InBev spokesperson, the deal comes as part of the company's strategy to strengthen its footprint in Henan province. The company has not disclosed the financial details of the deal, which is pending regulatory approval. The company is also looking to construct a greenfield brewery in Xinxiang, Henan.
CFW View: China's beer sales will continue to experience the strongest volume growth at 70.7%, as this sub-sector in particular is attracting major investments from the world's leading players, who are prepared to pay over the odds just to get a foothold in what is considered to be one of the best growth opportunities in the world. The brewer has a strong marketing and sales experience, vast sums to invest in business activities and it has increasingly been launching premium products, which are driving value sales.

17 Mar. 2011



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