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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.

Sapporo deal strengthens Coopers premium beer grip

FAMILY-OWNED independent brewer Coopers Brewery has strengthened its grip on the high-growth premium beer market, inking a deal last night with Japanese brewer Sapporo to brew and distribute the brand in Australia.

Woolworths previously held an exclusive licence to import Sapporo, but the beer will now be made in Australia for the first time and sold throughout Australia, New Zealand, and the Pacific Islands using Coopers' distribution operation. The deal comes as brewers fight it out for control of premium beers, especially imports, as local mature brands, such as VB (brewed by Foster's) and Tooheys (brewed by Lion Nathan), experience flat sales.

Adelaide-based Coopers remains the largest independent brewer in Australia. It has experienced strong growth from its portfolio of premium and craft beers.

Advertisement: Story continues below A contract between Coopers and Sapporo was signed last night at Sapporo's headquarters in Tokyo, with Coopers managing director Dr Tim Cooper and Premium Beverages managing director Bruce Siney in Japan to seal the deal.

Premium Beverages is 80 per cent owned by Coopers and handles the beer company's distribution operations.

The new deal is part of a push by Sapporo to expand its reach in the South Pacific. The beer sells about 100,000 cases a year in Australia.

Under the terms of the agreement, Coopers will brew Sapporo Premium Beer at its Regency Park brewery in Adelaide, with sales and distribution to be handled by Premium Beverages, from October 1.

Foster's Group said it expected to receive about $390 million in total from the Australian Tax Office after the conclusion of its long-running Ashwick tax litigation in May. It had received progress payments so far of $317 million from the Tax Office.

However, Foster's does not expect to be able to frank its final 2011 dividend and will be unable to frank subsequent dividends until it resumes paying Australian tax.

20 Jul. 2011



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