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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.

Beer drinkers leave established beer brands for microbrews

For decades they beers made by Miller and Coors were ranked as favorites across the country, and now sales for those same brands are falling.

According to the website WallStreet24/7, sales for Milwaukee Best, Old Milwaukee and Miller Genuine Draft dropped more than 50% from 2006 - 2010. For Costello, the drop doesn't come as a big surprise as the variety of craft and microbrewed beers is ever growing. Costello says, "I can't understand it. Me personally, I can't sit there and drink the same beer. It'd be like eating pizza everyday for 20 years. You're going to get sick of pizza."

Lakefront Brewery President Russ Klisch says, "It's also very interesting for people to go out there, and they have a little of this beer than try that beer and compare the flavor, and it's more exciting than just drinking the same old beer all the time."

The trend doesn't mean an end to power house brewers like MillerCoors, but a change in the game plan that may shake up the entire brewing industry. Klisch says, "I'm not thinking they're going to sleep on this too much. I think they'll try to come up with something interesting."

Competition is about to get even more fierce. The Brewers Association says more than 700 new breweries are currently being planned across the U.S. That's more than double what it was last year.

13 Sep. 2011



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