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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.

Britain to cut taxes on low-alcohol beers

Major breweries in Britain have plans to develop low-alcohol beers, following a new government measure to cut down duty on low-alcohol beers, which is set to be implemented this October.

In March, the Chancellor announced a 50% reduction of duty on beers with 2.8% ABV or less. Since then, many breweries have started developing low-strength beers at cheaper prices in expectation of high demand.

According to a recent research, many consumers are ready to switch to low-alcohol beers, provided the taste remained on par with the regular beer.

Fuller's, a brewery in London, which runs 361 pubs across the country, has been producing 2.8% ABV beer in readiness of the duty reduction. A pint of low-alcohol beer is expected to be about $1 cheaper than usual beers.

A survey conducted by the Campaign for Real Ale (CAMRA) showed that 52% of drinkers would consume a lower-strength beer if available in their local pub. Many health advocates believe that lower prices will lead to drinkers consuming less alcohol and fewer calories with their daily pint.

9 Aug. 2011

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