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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.

US. Upland Brewery announces $3 million expansion

Upland Brewery, a Bloomington-based brewery, announced plans for a $3 million expansion of its brewing facilities after much growth during the past few years.

Upland will be moving its brewing operations to a new, 47,000 square foot building located on West Grimes Lane.

The move will allow Upland to increase its brewing capacity from 11,000 to 25,000 barrels per year.

The current 11th Street facility will still house Upland’s restaurant and bar, the Tap Room.

However, Upland will switch its brewing operations there to a smaller pilot program to focus on the development of new specialty beers.

The new facility will be located immediately adjacent to the B-Line Trail and a former rail switchyard that Mayor Mark Kruzan said he wants to turn into “our community’s Central Park.”

The move comes during a time of growth for the brewery.

Upland’s president, Doug Dayhoff, said their sales have tripled in the past five years.

“This rate of growth has been possible because we have reinvested all profits back into the business, maintained modest salaries — thanks to a staff that is more passionate about quality beer than big paychecks — and squeezed capacity out of our original facilities and equipment in a ‘scrappy’ fashion,” Dayhoff said in a statement.

Dayhoff said Indiana is still far behind Wisconsin and Michigan in craft beer sales and hopes the growth in local breweries in Indiana continues to climb.

Caleb Staton, Upland’s head brewer, also thought the move was necessary because of Upland’s growth.

“We have experienced steady growth over the past five years, and the writing was on the wall when the last tank we installed stuck out of the roof by 4 feet,” Staton said.

He said he expected that growth to continue at the new facility, and the new facility will enable a tripling of Upland’s current size over the next decade.

Big Red Liquors was the first wholesale business to start selling Upland, and Upland beers have grown in sales ever since they started.

“We are excited that they are making a further significant investment in the Bloomington facilities, which will benefit the community for many years to come,” Wade Shanower, president of Big Red Liquors, said in a statement.

Upland also said it was prepared to increase its $3 million investment to beautify the building and the surrounding area. The brewery is seeking the city’s financial assistance to do so, and most city funds used would go to improving the aesthetics of the building.

Mayor Kruzan said he is excited about Upland’s plans and how they could accelerate the city’s vision for a new park in the area.

“It’s never easy for the trailblazer, but their success will be the community’s success and so I am thrilled to be working with this homegrown local business to see how the city can help in its growth,” Kruzan said.

28 Jul. 2011

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