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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.

China Resources/SABMiller JV buys breweries from Heineken

China Resources Enterprise Ltd said on Wednesday that its joint venture with SABMiller , the world's No. 2 brewer, has bought stakes in two beer makers in China from Heineken for 870 million yuan ($134.42 million) to cement its leading position in the country.

China Resources Snow Breweries Ltd (CR Snow) bought a 49 percent stake in Jiangsu Dafuhao Breweries and 100 percent of Shanghai Asia Pacific Brewery from Heineken Asia Pacific Brewery Co Ltd, it said in a statement.

"The group will continue to seek and evaluate investment opportunities actively as well as pursuing organic growth in order to expand our market share in China's beer market," said Chen Lang, chief executive of China Resources Enterprise, the country's biggest supermarket operator and top beer maker.

However, China Resources has said it is not interested in bidding for Australia's Foster's Group Ltd , and that its main focus was developing the mainland market.

China is the world's largest beer producer and consumer, attracting global giants such as SABMiller and Heineken to come and compete in the fast-growing industry.

China Resources said Jiangsu Dafuhao Breweries, which has a strong market position in central Jiangsu province, has five breweries in the province that can produce more than 450,000 kiloliters of beer a year in total.

Shanghai Asia Pacific Brewery, which produces "REEB", the most famous beer brand in Shanghai, has an annual production capacity of 250,000 kiloliters.

CR Snow is the largest beer maker in the country, with a 21 percent market share. In 2010, the sales volume of "Snow" brand beer alone surged 16 percent to about 8.4 million kiloliters compared with the company's total sales volume of 9.28 million kiloliters last year. ($1 = 6.472 Chinese Renminbi)

14 Jul. 2011



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