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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.

India. Budweiser to target smaller towns

The Indian joint venture of the world’s largest beer company Anheuser-Busch InBev, plans to push the iconic American beer brand Budweiser into smaller towns in its bid to grow in the Indian market that is dominated by strong brews.
Sales of the mild beer that's positioned in the premium category are also expected to increase in the northern parts of the country, including Delhi, when a new contract brewery in Pune commences operations by the second quarter of the next fiscal.
“We are in our fourth season this year and there are plenty of tier-one cities where there is a reasonable foundation. This gives us the luxury to take some of our expansion steps in a more balanced way,” said an official of InBev India International. “We have done a good job of expanding to a lot of tier-two and in some cases tier-three cities where surprisingly cost sensitivity was not an issue.”
According to industry observers, Budweiser sold around 1.7 million cases in 2010. The company plans to tap the smaller towns of Maharashtra and Andhra Pradesh, among the largest beer markets in India.“Overall, we are looking at a fairly aggressive growth chart this year,” the official said.
India’s beer market is estimated at some 200 million cases, of which more than three-fourth is the strong variety containing more than 5% alcohol, dominated by the Vijay Mallya-led United Breweries by market share, followed by SABMiller India.
Indian operations of Anheuser Busch and InBev had been integrated by early 2010, following the merger of the two global giants in 2008. Budweiser is currently manufactured at the Anheuser-Busch InBev brewery in Hyderabad and the marketing is handled by InBev India International, a joint venture between InBev and the RK Jaipuria which bottles Pepsi in India.

28 Mar. 2011

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