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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.

SABMiller plc To Open New Brewery

SABMiller plc, the world’s second biggest brewer, has plans to start construction of a new brewery in northern Namibia soon.

The new brewery will involve a 220 000 hectolitre plant, a bottling plant for 750ml recyclable bottles and a warehouse.

The new SABMiller plc (LON:SAB) brewery is expected to create some 150 new permanent jobs.

Cobus Bruwer, SABMiller plc (LON:SAB)’s representative in Namibia, said that, “SABMiller plc (LON:SAB) remains committed to the brewery. The plant would initially have been built in the Okahandja region of the Otjizondjupa province.this region was still the main option, but to ensure that SABMiller plc (LON:SAB) gained optimal benefit from the brewery other areas, such as Tsumeb, Oshakati and Ondangwa, were also being considered. SABMiller plc (LON:SAB)’s business plan targets the Namibian market and thus not necessarily exports. SABMiller plc (LON:SAB)’s strategy is to increase its footprint in developing countries. Two challenges are water, electricity and competition from Nambrew, which is already well established in the market. The availability of water and electricity are central to a final decision on where to build the brewery”.

SABMiller plc (LON:SAB) stocks stood at 2283 at the end of the last trading session.

3 Aug. 2011

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