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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 CEO sees better 2012 Russia market -paper

The head of the world's fourth biggest brewer, Carlsberg, said that the outlook for the group's key East European and Russian markets appeared brighter.

In November, Carlsberg reported a steeper-than-expected drop in third-quarter profits largely due to weakness in its Russian market and forecast a further decline in low single-digit percentages for the Russian market in 2012.

"We believe that things will be better in Eastern Europe and especially in the Russian market in 2012," Chief Executive Jorgen Buhl Rasmussen told the daily paper Jyllands-Posten in a newspaper interview published on Tuesday.

"When I talk with Russian business people, they are positive about the outlook for 2012," Rasmussen said, citing Russian expectations for a stabilisation of the oil price at a reasonably high level and for growth in Russian GDP.

"Their biggest concern is about how much Western Europe can negatively affect Russia," Rasmussen said.

Carlsberg, whose beer labels include Carlsberg, Tuborg, and Kronenbourg, said in November that its Russian market declined by 7 percent in the third quarter and its market share fell to 37.8 percent from 39.3 percent.

In late October, Carlsberg announced that it was replacing the head of its Russian unit, Baltika Breweries, to address the decline in the Russian business, which was hit by a 200 percent increase in Russian excise tax in January 2010.

Rasmussen told Jyllands-Posten that Carlsberg had shed about 25 percent of its workforce in Russia in the past few years. "So one cannot blame us for sitting still," he said.

27 Dec. 2011



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