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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 beer sales see largest drop in 14 years

Second quarter UK beer sales saw the biggest drop since 1997, according to new figures from the British Beer and Pub Association (BBPA).

The BBPA said in the second quarter of 2011, overall beer volumes for the 12 months to June 2011 fell by 7.1 per cent.

The UK Quarterly Beer Barometer showed that beer sales declined by 9.8 per cent, pub sales were down 4.5 per cent, with sales in supermarkets and shops down 15 per cent.

“Beer sales are a barometer of Britain’s economic confidence. With last year’s sales figures benefiting from the World Cup effect, which has historically boosted sales, sustaining volumes was always a challenge,” said Brigid Simmonds, BBPA chief executive.

However, the cumulative impact of tax rises of 10p per pint in pubs in Q2 severely dampened this positive impact, claims the BBPA.

“The Royal Wedding gave a welcome boost to this quarter’s beer sales, but beer tax rises are now hitting our brewers hard and undermining recovery.”

The chief executive said duty increases were fuelling inflation and stifling investment.

“Taxing beer fairly would create thousands of new jobs and substantial extra tax revenues at a time when we are all looking for private-sector led recovery,” he said.

Targeting women

This month Molson Coors rolled out a new female-targeted beer which it claimed could tap into a ?396m opportunity in the UK if it could achieve its aim of getting more women to buy into the category.

According to the brewer, women are vital to growing the shrinking beer market, which currently attributes just 17 per cent of its sales to females.

The company claims that 79 per cent of women in the UK never or rarely drink beer.

27 Jul. 2011

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