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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.


Carlsberg to own 90% of its India unit as Sri Lankan investor plans exit

Danish brewer Carlsberg stands to own 90% of its India operations as Sri Lanka . investor Lion Brewery Ceylon sells its stake to focus on the Sri Lankan beer market. The buy out, subject to shareholder nod, would enable Carlsberg own twice the stake it held before.

Carlsberg began commercial operations in India in 2007. It manufactures and markets super premium mild beer Carlsberg, premium strong beer Palone and premium mild beer Tuborg.

In a filing to the Colombo stock exchange last week, Lion Brewery Ceylon said it had decided to sell its shareholding to Carlsberg at a consideration equivalent to the book value of its investment, estimated at $20 million.

This decision taken was after the board of Lion Brewery Ceylon evaluated the large investment programme required in India. Through this move it said it could pay back debt and focus on the Sri Lankan beer market instead.

Lion Brewery Ceylon manufactures Lion beer and markets Carlsberg in Sri Lanka. It had invested in Carlsberg's India story since 2006.

4 Jun. 2011



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