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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.

Carlsberg to cut up to 150 jobs in Europe

* Brewer says to cut up to 150 jobs
* Says challenging and uncertain markets ahead
* Says maintains long-term ambition for profitable growth (Adds details, comments, share price)

Danish brewer Carlsberg said it was cutting up to 150 jobs to help cope with difficult and uncertain market conditions in European markets where it earns as much as half its profit.

"We are preparing for challenging market conditions in the coming years in Europe," said Chief Executive Jorgen Buhl Rasmussen in the statement.

"Although the outlook is uncertain, we maintain our long term ambition for profitable growth," Rasmussen said in the statement.

Two weeks ago, Rasmussen told Reuters the group was preparing for the worst conceivable business conditions next year and looking for ways to control costs as the euro zone crisis threatens to escalate.

Brewers' profits have been battered by the crisis in Greece and Iberia and analysts worry Italy and France might be next, while, outside the euro zone, Britain's beer market may suffer from national austerity measures aimed at cutting debt.

Rival Heineken has said the group has cut costs by over one billion euros since 2006, and that it will continue these cost cuts with the launch of its new Total Cost Management (TCM2) programme in 2012.

Carlsberg said it would cut 95 jobs in Denmark, Poland and Switzerland. The brewer said it would transfer 25 employees from Carlsberg IT to a business standardisation project and establish an integrated supply organisation for Europe, which will incorporate the group procurement, supply chain and logistics functions.

The organisation would be located in Switzerland and be in place by the end of 2012, Carlsberg said in the statement.

"2011 has generally been a challenging year for Carlsberg, not least in Russia, and when you look at the Western world, in the next two years, we believe it will be challenging for another two years," Rasmussen told TV2 News.

"Therefore, we have to make adjustments now. We cannot wait," Rasmussen said.

"By focusing and prioritising our activities, we have a solid foundation for future growth, when market conditions return to normal again," Rasmussen said in the statement.

1 Dec. 2011



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