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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 invests further into Chinese beer market

Global brewer SABMiller (SAB.L) is expanding further in the world's biggest beer market with its Chinese joint venture agreeing to pay around $42 million on Thursday for an investment in a brewer in the southern Chinese province of Guizhou.

SABMiller's Chinese joint venture, CR Snow, is making the investment for a 70 percent stake in a new joint venture which will own Guizhou Moutai Beer. CR Snow is buying the stake from China Kweichow Moutai Distillery Co, which will own 30 percent of the new joint venture.

CR Snow already has around a 50 percent market share in Guizhou province, and overall beer volumes in the province rose 10 percent to 3.9 million hectoliters in 2010.

CR Snow in 49 percent owned by SABMiller and 51 percent by China Resources Enterprise Ltd (0291.HK).

12 Sep. 2011



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