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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.


Bud Light Has ‘Plan B’ if NFL Doesn’t Play

On the list of those not planning to go down with the National Football League's work stoppage: Bud Light. The top-selling U.S. beer expects to begin its reign as the NFL's official beer with the coming season - only if there is a season.
Anheuser-Busch InBev, brewer of Bud Light, has a backup plan if NFL games are spiked, company CEO Carlos Brito said.
"We've been thinking about, of course, developing a plan B in the unfortunate case (a work stoppage) happens," Brito told analysts during an earnings conference call this month.
A-B InBev paid well for the privilege to be the NFL's official beer sponsor. It cut a deal last year widely reported to be worth $1.2 billion over six years.
Brito declined to say during the earnings call whether the brewer was obligated to pay even without a season.
It's not so outlandish: the NFL still collects on its $4 billion-a-year TV rights deal even without games.
But a company spokesman told the Post-Dispatch that Bud Light keeps its money if the NFL fails to play, allowing the brewer "to reinvest those dollars to reach Bud Light consumers in other, relevant ways."
Sports marketing has long been seen as a good way to sell beer. Last year, A-B InBev snagged the NFL deal from Coors Light and settled a dispute with Major League Baseball, allowing Budweiser to remain that league's official beer. Last month, Molson Canadian and Coors Light bumped off Labatt and Bud Light to become the National Hockey League's official beers.
The NFL is facing its first work stoppage since the 1987 strike-shortened season. The current dispute is scheduled for a court hearing April 6, with the NFL players' union seeking a court injunction to block the owners' lockout.
Brito told analysts that the brewer was "optimistic" the NFL would play this season.
He then sought to distance Bud Light's fortunes from those of the football league.
"But let's remind ourselves that Bud Light grew in the last three years without that property," he said.
He added: "It's a very good addition, a very important addition. But again, Bud Light grew even without the NFL."

20 Mar. 2011



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