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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.

Asia Pacific Breweries Advances With New Brewery In Guangzhou

Asia Pacific Breweries Advances With New Brewery In Guangzhou
• Further extends Group’s advancement in South China
• Intensifies premium brand strategy

Asia Pacific Breweries Ltd (APB) today celebrated the official opening of the greenfield brewery of Guangzhou Asia Pacific Brewery Co. Ltd (GAPB) in Guangzhou, China. GAPB is a wholly-owned subsidiary of Heineken-APB (China) Pte Ltd in which APB holds a 50% stake.

The RMB400 million (or approximately S$80 million) brewery is situated in the Huangpu District of Guangzhou City. The one million-hectolitre facility is designed to brew Tiger, Heineken and Anchor.

Mr Roland Pirmez, Chief Executive Officer, APB commented, "The opening of the Guangzhou brewery marks an important milestone for APB in China where the Group also owns brewery operations in Hainan and Shanghai. Apart from extending our existing presence in South China, this development is consistent with our vision to become the leading brewer in the Asia Pacific region. Including this new brewery, we now have 29 brewery operations in 13 markets."

The diverse portfolio of brands that the Group offers in China includes the internationally acclaimed Tiger and Heineken as well as the popular Anchor. The commissioning of the new brewery in Guangzhou will enable the Group to further capitalise on the buoyant China beer market and trend of premiumisation, i.e. an increasing desire for fine quality international brands amongst the Chinese population.

Last year, China consumed 448 million hectolitres of beers (approximately 136 billion X 330 ml bottles), 6.3% higher than the year before. Beer consumption per capita stood at almost 34 litres (approximately 103 X 330ml bottles), up from 27 litres (approximately 82 X 330ml bottles) just five years ago. Guangdong is the third largest beer market in China with a volume of 38 million hectolitres. Aligned with rising income, the premium beer segment in Guangdong, already the largest in China, grew 9% in 2010.

Mr Malcolm Tan, Regional Director, China, APB elaborated, "As the brewer of leading International beer brands, Tiger and Heineken, we ensured the local consumers continually found favour with our beer. Leveraging the strong brand equity and the international success of our beer brands have worked well for us in this market that is increasingly leaning towards high end names. Owing to a robust Chinese economy as well as our strategic marketing expertise and distribution network, Tiger and Heineken have grown to be popular premium choices, especially in South China. The new brewery in Guangzhou will thus meet the rising demand for a sustainable beer supply as we further intensify our premium brand strategy in China."

Meanwhile, Anchor and its variants remain a key brand that supports the Group’s portfolio that caters to a wider spectrum of the market.

"Given the strong China economy, the key cities with close proximity to the Pearl River Delta are expected to thrive further. This means that our premium brands and up-market strategy will remain relevant in driving our growth to the next level," added Mr Pirmez.

24 May. 2011

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