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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.

SABMiller JV to bid for Shaoguan Huoli Beer

SABMiller-China Resources Enterprise JV, China Resources Snow Breweries (CR Snow), has plans to bid for Shaoguan Huoli Beer Co, a Guangdong-based brewery, in the process of its expansion in the southern province.

The CR Snow's bid for the Guangdong-based beer brand follows 6 months after CR Snow Breweries lost out on a 21.37% stake in Kingway Brewery Holdings, to Anheuser-Busch InBev, reported Business China.

With a production capacity of 150,000 tons per annum, Huoli Beer Company distributes the Huoli-branded beer products in Guangdong, as well as in Jiangxi and Hunan provinces.

Guangdong Provincial Alcohol Industry Association secretary general Zhou Maohui said Huoli Beer, with its geographical advantage in Shaoguan, would help CR Snow Breweries to establish its position in the Hunan and Jiangxi markets.

Recently, the company inked a deal with China Kweichow Moutai Distillery Co, to jointly invest in Guizhou Moutai Beer (Moutai Beer) and form a JV called China Resources Snow Breweries (Junyi).

7 Sep. 2011



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