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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.

drinktec

Diageo To Relocate Production of US Supply of Red Stripe Beer

Diageo, the world’s leading premium spirits, beer and wine company announced today that production of Red Stripe currently brewed in Jamaica for the US market will be relocated to the United States beginning in 2012. Pennsylvania-based City Brewing has been tapped to handle US production. Jamaica-based Desnoes & Geddes Limited (D&G) will continue producing Red Stripe for Jamaica, Brazil, Canada and Europe and will receive royalties on US Red Stripe sales.

This new production model, typical for most global brewers, will enable greater investment in the brand in the US.

“Red Stripe and Red Stripe Light’s distinctive taste profiles will remain the same, and the brand’s personality will continue to embody the Jamaican culture that has always been its inspiration,” said Sheila Stanziale, President, Diageo-Guinness USA.

Stanziale continued, “Moving to a US production model for US volume significantly strengthens the Red Stripe brand and is a clear demonstration of Diageo’s commitment to the beer category, and to accelerating the growth of Red Stripe and our entire brand portfolio.”
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6 Oct. 2011

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