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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.

US. Baxter Brewing Company Plans to Double Capacity

Baxter Brewing Company, Maine's newest microbrewery and the only New England brewer to ship all its beer only in metal packaging (cans and kegs), announced plans today to double its current production capacity after only ninety days of operations.

"Demand has been absolutely phenomenal," reports company founder and president, Luke Livingston, "from all corners of Maine, from restaurants, bars, beverage stores, convenience stores, grocery chains; from everyone! We are extremely gratified." The brewery began shipping its first two varieties of beer - Pamola Xtra Pale Ale and Stowaway IPA - just in January, 2011. The handcrafted beers ferment for a week and then are cold conditioned for two more weeks, a three week process that is longer than typical for other Maine breweries but one which produces smoother, more robust beers. The 30 barrel brewhouse system, with two 60 barrel fermenters and two 120 barrel conditioning tanks, and the three-week cycle enables the brewery to yield just over 300 barrels (9,300 gallons or 4,200 cases) monthly. "But demand has already exceeded our capacity," Livingston explained, "and we're just now coming into peak beer season in Maine."

The addition of two more fermenting tanks and one new conditioning tank, expected to arrive in early June, will double the volume the brewery can ship each month, as well as allow the company to introduce new varieties to their lineup. Furthermore, the new tanks will result in the creation of 2.5 new full-time-equivalent jobs, bringing the total workforce to 9 (FTE). "There's no question this is a major capital expansion," Livingston said, "and one we didn't expect to undertake nearly this quickly. The fact that we're growing so fast is something that no one could have anticipated, but it shows that we are really filling a high-demand niche. I know there were beer fans who were skeptical that we could package great beer in cans, but we seem to have satisfied their concerns, and then some!" Although new to northern New England, canning of craft beer has been an emerging trend on the west coast and in Colorado for several years, corresponding to the introduction of micro canning equipment from Cask Brewing Systems, of Calgary, Alberta CN. The new tanks are being acquired from Newlands Systems Inc, suppliers of the original Baxter brewhouse. Although also a Canadian company, the new fermenters are some of the first be manufactured at Newlands' brand new American facility, located in Detroit, MI.

When asked if he thought initial demand had been enhanced by the Maine beer community's natural interest in new locally produced craft beers along with people experimenting with a the new concept of cans, Livingston said "Probably, but what is most encouraging is that one of our distributors (Pine State Trading Company, of Gardiner, Maine, the biggest beer wholesaler in Maine) reported that 100% of those who ordered shipments from the first batch of beer, in January, re-ordered in February, and 80% of them increased the size of their orders!" Elaine Roop, of Rooper's stores in Lewiston and Auburn said "We sold more than 200 cases [of Baxter Beer] in the first month. I've never seen anything like it!" Tully's Beer and Wine, in Wells, Maine, sold out in a single afternoon. Pelletier Loggers Family Restaurant Bar and Grill in Millinocket sold through three full kegs of Baxter's beers in a single evening, while Empire Dine & Dance in Portland went through two. Beer stores including Florian's in Auburn, Bootlegger's in Topsham, and RSVP and Downeast Beverage in Portland have been reporting brisk activity, as well.

"We have some great, unique beers," Livingston said. "People seem split down the middle in terms of preference for Pomola Xtra Pale Ale, a lighter, session beer perfect for Maine's outdoor lifestyles, especially since it's packaged in cans, the ultimate portable container; and Stowaway IPA, a more balanced and flavorful west-coast style IPA, unlike anything else currently brewed in Maine. And we've shown that cans really are superior packaging - less environmental impact to produce and ship, completely portable, and actually better for preserving fresh beer taste. We knew the market would be ready for us, but we've been surprised and thrilled by how enthusiastic everyone has been. This is a great community in which to do business, and we're excited to be helping grow the economy. Of course, this also means that we have to re-open the walls of Bates Mill sooner than we had planned, in order to move in the new tanks. If we knew we would grow so quickly, we might have installed a garage door instead!"

5 Apr. 2011

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