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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. Illinois Craft Brewers One Step Closer to Settling Dispute

An Illinois Senate committee today advanced legislation to ensure that craft brewers can get their beers in the hands and homes of consumers without violating the state's liquor laws.

Small brewers "went into business with the right and authority to self-distribute," said state Sen. Donne Trotter, D-Chicago, who sponsored the legislation to protect a small brewery in his neighborhood.

A lawsuit filed last year by Anheuser-Busch against the Illinois Liquor Commission called into question beer makers' rights to directly sell their products to consumers. Larger breweries must work through the state's network of wholesalers and distributors, who tap into the corporate profits in exchange for storing and delivering beer.

Trotter's plan, which now moves to the Senate floor, would maintain that framework with slight alterations, designed to appease the federal judge who last year declared the state's liquor distribution laws discriminatory. The ruling set a March 31 deadline, now extended to May 29, for lawmakers to correct the system.

As the legislature scrambles for a solution, Anheuser-Busch is working hard to kill the bill.

"Anheuser-Busch has always contended that all brewers in Illinois can distribute.... all brewers," said legal counsel Ed Crane. "That's how the law reads and we believe that the liquor commission was the one that made the mistake here."

15 Apr. 2011

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