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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.

Anheuser-Busch InBev Targets Super-Premium in China With Stella Artois Roll-Out

Anheuser-Busch InBev has lined up a push for Stella Artois in China as it looks to up the presence of its global beer brands in the country.

Stella Artois, which has had "a small presence" in China "for some time now", has been rolled out recently in the cities of Beijing, Shanghai and Guangzhou, the company has confirmed to just-drinks. Stella Artois follows its sister brand, Budweiser, into the market as A-B InBev focuses on super-premium opportunities in China.

In an exclusive interview with just-drinks this month, A-B InBev's CMO, Chris Burggraeve, detailed the brewer's approach in the emerging market. "(In China) we have a portfolio approach, whereby we focus on three key brands, Burggraeve said. "Budweiser leads the premium segment, which was developed from scratch over the last ten years and is growing twice as fast as the overall beer category in China, (which is) already the biggest beer market in the world.

"We also focus on Harbin, a local brand from the north, which is the oldest beer brand in China," he said. "With Harbin, we're looking to build it into a national brand. That will take time, but things move much faster in China than they ever did in the US and Europe. Finally, in the south, we have Sedrin. That's the regional powerhouse that we will keep regional in that area."

Burggraeve added that the roll-out of Stella Artois will be very concentrated. "You'll see Stella Artois (in very selected places) in Beijing, Shanghai and Guangzhou," he said. "In these cities, you have a group of consumers who are looking for super-premium. We trialled the brand at last year's Expo in Shanghai - more than 70m people went to Expo over six months! So, there is a clear demand in China for super-premium and for a global brand that delivers that."

Also in the interview, Burggraeve discusses the challenge of making - and maintaining - a global beer brand, counters the charge of cost-cutting regularly levelled at the company, and highlights A-B InBev's CSR efforts as it has made the move from big brewer to become the biggest.

1 Jul. 2011



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