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4-2017

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.

UK. Heineken to unveil deliveries shake-up

Heineken UK is introducing a minimum delivery scheme from 1 August — meaning pubs will need to order three kegs or more of beer or cider per week or they will no longer be able to order through the brewer.

Under the terms of the scheme, any pub unable to place the minimum weekly order will either be asked to order every two weeks, or be passed the details of local wholesalers.

Licensee John McMennum, of the Sportsman Inn, Toft Hill, County Durham, has called the situation “horrendous”.

He is concerned as he orders not just his beer and cider through the brewer but also packaged drinks such as Red Bull and J20, and cleaning products.

He said: “We are a freehouse and struggling to keep afloat. We are going to get sidelined and have to go to a wholesaler but we don’t get the same level of discount with them. I don’t know what our future holds.”

David Jones, a spokesman for Heineken UK, said: “Heineken UK is introducing a minimum-delivery scheme from 1 August in order to address the disproportionately high financial and environmental costs associated with the delivery of small orders.

“The small percentage of our customers who are unable to place a weekly order of three kegs or more of beer and cider will be asked to consider placing orders on either a fortnightly or monthly basis.

“Alternatively, we can recommend wholesalers in the area who supply our brands and they may be able to offer more flexible deliveries.

“As a responsible brewer, Heineken UK is committed to reducing the environmental impact of its business and this change to our delivery patterns will contribute towards this aim.”

15 Jul. 2011

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