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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.

Ukraine. Obolon starts exporting beer to China

In November 2011 Obolon Corporation started exporting beer to China.

Beer supplies to China are carried by sea - from Kyiv via Odessa and the Indian Ocean. Obolon-brand products will be sold in the Wal-Mart retail chain of stores, in hotels and restaurants of the largest cities in China. The average price of a 0.5-liter Obolon beer bottle in a store will start from CNY 20 ($3.14).

According to research companies, China consumes more than a quarter of beer produced in the world. However, the consumption rate lags well behind Czech Republic, Germany and Belgium. Last year the average citizen of China consumed 35 liters of beer, the Ukrainian - 58L. and the German - 107L. Beer market in China is in the active stage of formation, which is a favorable condition for the further establishment of Obolon Corporation export program .

Sergiy Kravets, the director for foreign economic affairs at Obolon Corporation:
"The Chinese beer market annually grows by over 10% due to economic growth and the increase in living standards. Now foreign companies are free to enter the market of this country. The first negotiations on the future cooperation with the eastern partners were held at the SIALChina2010 international exhibition in Shanghai. They are resulted in conducting a contract to supply our beer"

7 Dec. 2011

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