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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.

Ukrane. “Slavutich”, Carlsberg Group will Purchase a Batch of Hops from a Ukrainian Producer

"Slavutich" company starts cooperation with a domestic producer of hops. The company will purchase the first batch of the Ukrainian granulated hops in the amount of 678 kg (alpha acid) from "Schedry Urozhay" agricultural firm. The volume of the batch being purchased makes up 2.5% of "Slavutich" annual demand in hops.

"Slavutich" company has a single list of requirements for raw materials suppliers regardless of a country of origin. After being audited at the research center of "Carlsberg" in Strasbourg (France) the products of each new supplier are launched into production. Each brewery's laboratory of Carlsberg group checks incoming inspection of raw materials, key parameters at each stage of production, as well as indices of finished products. Only after the company is confident in the stability of quality characteristics of raw materials the supplier has an opportunity to take part in the tender and if it is satisfactory to get a yearlong contract.

The hops of "Schedry Urozhay" has passed all the necessary stages of the internal check of Carlsberg group and meets the approved specification according to the conclusion of the internal audit. For its strategic cooperation "Schedry Urozhay" actively works at further production development, implementation of the quality management system and elimination of the defects identified during the audit of the company "Slavutich", Carlsberg Group.

It should be reminded that this cooperation was the result of meeting of the beer industry leaders with representatives of the Association of the hop growers of Ukraine which was held in February 2011. During the negotiations "Slavutich" and other industry representatives expressed their intention to go fully over the Ukrainian hops if the domestic raw materials will meet the brewers' requirements. Among more than 10 Ukrainian suppliers who participated in the event only "Schedry Urozhay" agricultural firm expressed its desire to continue negotiations and fulfill necessary procedures for cooperation.

Ruslan Melnik, National Top Brewer at "Slavutich", Carlsberg Group: "Our technologists are generally satisfied with the supplier's work. Currently, the agricultural firm is eliminating our comments on the audit, and we will start the practical part of our cooperation immediately. We hope that after testing the Ukrainian hops our desire to work with domestic suppliers will be realized in the long-term partnership."

17 Jun. 2011

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