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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.

Nigerian Breweries in discussions to acquire two breweries from Heineken NV

Nigerian Breweries Plc has begun discussions with Heineken NV regarding the potential acquisition of three of the five breweries recently acquired from the Sona Group. The proposed acquisition is subject to the approval of the Board and Shareholders of Nigerian Breweries, as well as relevant regulatory authorities.

The discussions follow on from the announcement in January 2011 that Heineken would “explore the possibility of consolidating the newly acquired breweries into its existing business structure in Nigeria during 2011.”

The discussions should lead to the transfer of majority equity interests in Sona Systems Associates Business Management Limited (which owns breweries in Otta and Kaduna) and Life Breweries Company Limited, Onitsha, to Nigerian Breweries.

Nigerian Breweries believes that the proposed transaction will improve the geographic spread of its operations, enable it to address existing capacity constraints and further strengthen its platform for future growth. The negotiations are expected to be concluded in the coming months and further announcements will be made when appropriate.

Mr. Nicolaas Vervelde, Managing Director/CEO, Nigerian Breweries Plc said: “The addition of the breweries we propose to acquire from Heineken will significantly broaden our geographic reach and address the capacity restraints we have currently. As a result of this transaction Nigerian Breweries will be better positioned for future growth.”

Nigerian Breweries Plc was incorporated in 1946 and started production in 1949 with Star lager in Lagos Brewery. The company currently has 2300 persons in its direct employment and several others through outsourced businesses.

The company brews and markets the following brands: Star (lager beer), Gulder (lager beer), Heineken (lager beer), Legend (extra stout), Maltina (non-alcoholic malt drink), Amstel Malta (non-alcoholic low sugar malt drink), Fayrouz (malt based soft drink) and Climax (herbal energy drink).

18 Apr. 2011

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