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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.

Diageo Said to Walk Away From Bid for Brazil Brewer Schincariol

Diageo Plc (DGE), the maker of Guinness stout and the world’s largest liquor company, dropped plans to bid for Primo Schincariol Industria de Cervejas & Refrigerantes SA of Brazil, two people familiar with the matter said.

London-based Diageo walked away amid disagreements among the Brazilian brewer’s family shareholders, said one of the people, who declined to be identified because the talks were private. Brewers including Heineken NV (HEIA) have been considering bidding for the Itu, Brazil-based company, which may be valued at about $4 billion, one person said.

The sale process has slowed on concern that the buyers may not succeed in gaining control because some of the company’s family owners oppose a sale, the people said.

It’s unclear whether Schincariol will end up being sold, the people said. A spokesman for the Brazilian brewer at FSB Comunicacoes, a communications company, declined to comment.

Diageo’s decision not to pursue Schincariol means it will need to find another way of expanding in Latin America beer. The company is examining ways to “do something appropriate and constructive in beer” in the region, Stuart Fletcher, outgoing president of the international unit, said on June 2.

Heineken, the world’s third-largest brewer by volume, was said in May to be reviewing a possible bid for Schincariol, which is Brazil’s second-largest brewer behind Anheuser-Busch InBev NV. SABMiller Plc (SAB), which last month bid A$9.5 billion ($10.2 billion) for Australia’s Foster’s Group Ltd., may also be interested.

SABMiller spokesman Nigel Fairbrass and Heineken spokesman John Clarke both declined to comment.

5 Jul. 2011



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