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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. A battle is brewing over a bill that would allow microbrewers in the state to continue distributing their own beer.

Since the end of Prohibition Illinois has had a three-tier alcohol system: manufacturers, distributors and retailers.
Microbreweries, which are manufacturers, are aloud to distribute their own beer.
But, when Anheuser-Busch wanted to buy an Illinois based distributor they were denied.
Anheuser-Busch then challenged the decision saying it was discrimination and a federal judge agreed.
17th District Senator Donne Trotter says, "The judge stayed the resolution so hopefully we could resolve the situation legislatively before he acted."
Now a bill is making its way through the Illinois legislature that would establish a cap for microbreweries while still enforcing the three-tier system for distributors like Anheuser-Busch. The goal is to help keep microbreweries in the state afloat.
Trotter says, "What this legislation will do it caps the amount of barrels that they would be able to make to 15,000 and of that 15,000 they can self-distribute 7,500."
Supporters say microbreweries should still be aloud to distribute otherwise they can't compete with giants like Anheuser-Busch.
Virgil Grider, a beer buyer for Radio Maria in downtown Champaign, says, "This bill will be awesome because it will allow the smaller breweries to get their beer outside their general area."
Opponents argue the bill's cap for microbreweries is too high.....and that the smaller businesses could still succeed with a lower ceiling.
Senator Trotter says he expects they will pass the bill sometime after Easter break.

18 Apr. 2011

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