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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.

Tanzania: SBL to Launch Modern Brewery in Moshi

Serengeti Breweries Limited (SBL) is set to inaugurate its state of the art brewery in Moshi tomorrow, as part of the company's strategy to increase its production capacity. SBL is the second largest beer company in Tanzania, with its own brands accounting for 15 per cent of the market by volume.

And when combined with its parent company, East Africa Breweries Limited (EABL) portfolio, the market share will account for approximately 28 per cent of the local beer sector. A statement released by SBL Corporate Relations Director, Teddy Mapunda in Dar es Salaam on Sunday said the company's new brewery in Moshi would increase its operating plants to three.

"With the launch of the Moshi brewery, the number of our operating plants has now gone to three. We have two other operating plants in Dar es Salaam and Mwanza," she said. She added that the Dar es Salaam and Mwanza plants have a production capacity of 350,000 and 650,000 hectolitres respectively.

"With the additional capacity of Moshi plant which can brew 500,000 hectolitres, the company will be able to produce a total of over 1.4 million hectoliters per annum," Mapunda said. She added that the company production will thus increase by 55 per cent with the launch of the new plant, adding that up to 200 people will be employed during the facility's full operation.

"The Moshi plant has now employed 85 staff bringing SBL's total staff 624 directly employed and about 700,000 indirectly engaged. She said that the Moshi plant's total production will be expanded further to 800,000 hectoliters per annum. Mapunda said the company has organized a media tour to the brewery that will give the media an insight of the plant's production capacity and technology.

She said the company will also organize an entrepreneurship seminar at Sheikh Amri Abeid Stadium that will highlight on the potential opportunities related to the launch of the Moshi brewery. SBL was incorporated in 1988 as Associated Breweries Limited and changed its name to Serengeti Breweries Limited in 2002 with its headquarters in Dar es Salaam.

The owners and management of SBL acquired the company in 2002 and commenced on a strategy of rapid expansion which has resulted in outstanding growth. EABL, a subsidiary of multinational brewing company, Diageo, acquired majority stake in SBL in 2009.

29 Nov. 2011



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