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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.

Asahi Breweries Delays West Japan Plant Closure Amid Supply Concerns

Asahi Breweries Ltd. (2502.TO) said Monday it will postpone the planned shutdown of its brewery in Nishinomiya, western Japan, by one year to provide stable beer supplies amid concerns about power shortages in the east of the country after the March 11 earthquake and tsunami.

The company originally planned to close the ageing brewery by August of this year, but will now push the closure back until August 2012. The firm said the decision won't lead to any revisions to its earnings outlook for the current business year ending December.

The move comes after Asahi decided to raise its production by over 10% via a boost in output at domestic breweries not affected by potential power outages.

Its brewery in Fukushima, northern Japan, is scheduled to resume operation by next month after it was hit by the March 11 disaster. But that facility is unlikely to return to full capacity any time soon, and the status of the firm's Nagoya plant in central Japan remains uncertain following the temporary shutdown of a nuclear plant in the region.

15 Jun. 2011

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