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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 unit says Peru growth outlook robust

Peru's largest brewer will start a $300 million expansion next year to boost output at its five plants, an executive for the SABMiller unit said on Friday.

The expansion by Backus and Johnston is expected to take three years, Felipe Cantuarias, a company spokesman, said.

Beer consumption in Peru was more than 42 liters (11.1 gallons) per person so far this year, Cantuarias said, noting it was a record amount for the country.

By comparison, the Czech Republic consumed 158.6 liters (41.8 gallons) per person in 2009, according to a report in The Economist.

"We still have a long way to go," Cantuarias said.

Peru's economy is forecast to grow this year at least 6.7 percent, despite uncertainty about a possible global crisis, lower than the 8.8 percent expansion in 2010.

Cantuarias said Backus and Johnston expects to close this year with a "sustained growth" in sales, mainly of its brands Cristal, Pilsen and Cusquena.

"In the first part of the year sales grew 11 percent sales and in the second half of the year we have seen that domestic consumption remains strong," said the executive.

Backus and Johnston last year reported net sales of 2.67 billion soles ($988 million), according to the company.

5 Dec. 2011



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