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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.

UB eyes 5% mild beer market in FY 12

The largest beer manufacturer of India, United Breweries Ltd.,wants to grab 5 % of premium mild beer segment by next year with the launch of global super premium brand Heineken

UBL General Manager (Marketing) Sanjoy Roy during lauch of Heineken in the city on Monday said, "We want to achieve 5% of mild beer market by next year with the launch of the Amsterdam based global super premium mild beer in Kolkata."

"We have already launched the brand in Mumbai, Delhi, Chennai, Hyderabad, Chandigarh and few other cities, but till date we were selling imported beer from other countries. Now we are manufacturing it in India at UBL's Bombay Breweries, Taloja," he said.

He said that import of this brand put extra burden on customers, but as "we are manufacturing at our own breweries, now the price is very competitive against other brands."

UBL has some major premium beer brands like Kingfisher Ultra, Kingfisher Premium, Foster, Tuborg, Carlsberg.

Out of the total beer market, mild beer has 20 % market share.

Roy added that this year "we expected to sell 2 lakh mild beer bottles and till November we achieved 60% of target."

"In the next year we target to sell around 5 lakh mild beer bottle," he said.

Heineken has 37.7% share in UBL in India.

Roy said if the state government increases service tax in future, the price of beer and other alcoholic drinks will also increase.

20 Dec. 2011



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