Pivnoe Delo
abbey-beer-icon

pivnoe-delo_logo5

Top articles

Journals

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.

China. Tsingtao Brewery first quarter profit up 40 pct

China's Tsingtao Brewery posted a 40 percent increase in first quarter net profit on higher sales, as its distributors stocked up ahead of increases in the prices of it beer products.

Tsingtao, in which Asahi Breweries holds a stake of more than 19 percent, said its net profit rose to 393.4 million yuan ($60.4 million) for the three months through March, from 280.9 million yuan a year earlier.

'During the reporting period, the company maintained the satisfying sales momentum, especially as driven by the rapid growth of the mid-high-end products,' the company said in a filing with the Hong Kong stock exchange on Thursday.

Sales volume rose 22 percent year-on-year to 15 million hectolitres, with sales volume of Tsingtao rising 36 percent.

Analysts are positive on Tsingtao's business outlook as China's beer consumption continues to rise, and the firm continues to grow its sales through acquisition.

Analysts had expected Tsingtao to post more than 20 percent rise in sales volume for the first quarter of 2011, as distributors stocked up prior to increase in its beer prices.

They gave no forecast for its quarterly earnings.

Tsingtao hiked prices of its main brands by about five percent in the first four months of 2011 to help offset rising packaging and labour costs, and barley prices, analysts said.

This was prompted by a 3-4 percent year on year increase in packaging costs, 30-40 percent rise in barley prices and a 10 percent increase in labour costs, Barclays Capital said.

Barclays expects stable gross margins of 35.1 percent for Tsingtao in 2011 as compared to 35.2 percent in 2010.

'Facing the rising barley prices and packaging costs, it is necessary for it (Tsingtao) to hike price further in order to maintain gross margin at the current level of about 35 percent,' said William Lo, analyst at Ample Capital.

Tsingtao aims to boost annual production capacity to 100 million hectolitres in the next five years. It is China's second-largest brewer by volume after CR Snow, a joint venture between China Resources Enterprises and SAB Miller .

It also competes with Heineken, Carlsberg and Kingway Brewery in China, the world's biggest beer market.

Tsingtao's Hong Kong-listed shares are up 1.97 percent so far this year, compared with a 3.34 percent rise in the broader Hang Seng Index. ($1 = 6.512 Chinese Renminbis)

29 Apr. 2011

Advertising

pilsena_en
gea
sidel100x100
jg
portinox

Main topics

Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Search in posts
Search in pages
Search in groups
Search in users
Search in forums
Filter by Custom Post Type
Filter by Categories
Home
Magazines
News
×