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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.

Tsingtao to open new brewery in Jieyang

Tsingtao Brewery Company Limited, China’s largest and the world’s sixth-largest brewer, is building another new plant in China, this time in Jieyang city, Guangdong province, Chinese newspapers reported on Monday. The company and and Guangdong Jieyang City signed an investment agreement on June, 24.

The plant’s annual capacity is expected to amount to 600 million liters. The company plans to start building the new plant at the end of July 2011 and to start production in July 2012. Tsingtao will invest 800 million yuan in the new brewery that will produce bottled and canned Tsingtao Beer and Shanshui Beer. The new plant will employ the latest in brewing technology and is said to be the most energy efficient beer factory in China,, it is reported. The brewery will have an attached consumer experience center.

According to Huang Kexing, the company’s vice president, Tsingtao’s beer sales have been growing in the high-end market in in Guangdong province in the past few years and the new plant is build to meet the growing consumer demand in this market. Tsingtao Brewery will not only bring jobs, revenue, cash flow, business flow, logistics and other physical capital to the region but the investment might also attract other companies to invest in Jieyang, Huang Kexing further said at the signing ceremony.

The opening of the brewery in Jieyang is another step to the company’s declared goal to expand its annual beer production and sales volume from 6.35 billion liters to 10 billion liters over the next three years. Rizhao, Xiamen, Fuzhou, Yangzhou, Suqian, Langfang, Zhuhai, Wuwei, Shijiazhuang, Tsingtao has a lot of projects to achieve the capacity. Currently, Tsingtao Brewery has more than 50 breweries in 19 provinces and cities.

Tsingtao Brewery is one of the oldest beer producers in China, founded in 1903 by German and British merchants. Through a century’s development, the brand has entered more than 70 countries and regions including the United States, Japan, Germany, France, the United Kingdom, Italy, Canada, Brazil and Mexico.

1 Jul. 2011



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