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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.

Kenya. SABMiller Launches Draft Beer in Comeback

Global Brewer SABMiller seeks to broaden its footprint in the local alcoholic beverage market launching a new draft beer through its subsidiary Crown Beverages Limited (CBL).

Crown Beverages Limited Marketing Manager Pinkie Nyandoro said the introduction of the Miller Genuine Draft (MGD) into Kenya sets the country up as major market for the brewer in the region.

"This launch coincided with some changes that have happened in the Kenyan alcoholic market. SABMiller has recently re-entered into this market. We are proud to be associated with the launch of this brand into Kenya," she said.

MGD is SABMiller's third beer in the Kenyan market, rivaling beer brands Tusker Malt and Heineken that already have a grip on the premium segment of the local beer market.

Nyandoro said the draft beer is targeted at Kenya's growing urban population and has a unique patented filtration process that produces the beer in its freshest form.

"Consumers can look forward to a special beer in the terms of the way it is brewed and the production process. It's 4X cold filtered. It's as fresh as a beer can get," she said.

The MDG beer was first launched in the United States in 1987 and to date is SAB Miller's best selling beer with four million bottles sold daily.

SABMiller has a presence in over 20 African countries that accounted for 12 percent of the group's total revenues for 2011.

SABMiller left the Kenyan market for a nine-year period, and since East Africa Breweries Limited (EABL), bought the giant brewer's 20 per cent stake in Kenya Breweries Limited (KBL) at a cost of Sh19.5 billion.

"We're looking forward to launching a few exciting brands that have been well researched and that we feel Kenyan consumers will be very anxious to experience in this market," Nyandoro said.

Other SABMiller products distributed locally include Redds, and the company's flagship product in Kenya, Castle Lager, that was introduced in the late 1990s.

20 Dec. 2011

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