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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.

Ukraine. Obolon starts producing UK beer under license of US Molson Coors

Obolon Corporation (Kyiv), one of the largest breweries in Ukraine, has agreed with Molson Coors Brewing Company (the United States) on the production of British Carling beer at Kyiv-based plant Obolon, Molson Coors International Director General in Ukraine Oleksandr Kiselev has reported.

"Molson Coors is entering the Ukrainian market. This is a commercial project, in which the companies agreed to produce and sell Carling beer in Ukraine and share profit. The first result of our cooperation will be the marketing of British Carling light beer in Ukraine," he said at a press conference at Interfax-Ukraine on Wednesday.

Kiselev also said that the companies had signed a long-term contract and Molson Coors has no plans to work with other breweries in Ukraine.

According to him, Carling beer, whose production started at Obolon plant on May 13, will be produced in Ukraine in 0.5-liter bottles, whereas in other countries it is produced in 0.33-liter bottles and 0.5-liter cans.

"We plan to occupy a significant share in the premium segment. We're talking about the production of 20,000 hectoliters [by the end of 2011]," said Kiselev.

The price of a bottle of Carling beer in Ukraine will be UAH 5.50-5.80.

The director general of Molson Coors International in Ukraine also said that the company plans to expand its portfolio of brands in the premium segment in the country after seeing success from the promotion of the Carling brand.

At the same time, according to the marketing director of PJSC Obolon, Vitaliy Tkachenko, the growth of the premium segment on the beer market in Ukraine this year will be about 1% and reach a share of 13.5%.

"In 2010, the share amounted to 12.5% according to our internal data. According to our calculations, the share of the premium segment is expected to grow by about 1%, to 13.5%," he said.

Molson Coors Brewing Company was founded on February 9, 2005 through the merger of two large beer producers in North America, Molson (Canada) and Coors (the United States). The company's total income in 2010 amounted to $4.7 billion, and its net profit was $667 million.

Molson Coors Brewing Company operates in 30 countries, and owns 20 breweries. The company's portfolio includes 65 of its own and partner brands, in particular, Coors, Coors Light, Carling, Blue Moon, Molson Canadian, Miller, and Keystone.

Obolon is one of the largest Ukrainian manufacturers of beer, soft drinks, low alcohol drinks, mineral water and the largest Ukrainian beer exporter. The corporation consists of the main plant in Kyiv and nine enterprises in regions. In 2010, the company increased beer production by 3% compared to 2009, to 99.4 million decaliters.

26 May. 2011

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