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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.

Belgium’s Two Big Beer Producers Increase Wholesale Prices

One of the top beer drinking capitals of the world is not happy prices are on the rise.

After Anheuser-Busch InBev and Heineken’s Alken Maes recently announced wholesale price increases for their canned and bottled beers sold in Belgium, the country’s economy minister Johan Vande Lanotte has asked the competition authorities to investigate.

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In a statement by Lanotte’s spokeswoman, she said, “We will ask the competition authorities to investigate whether this is a case of unfair competition or price fixing.”

The two producers have cited rising energy, staff and raw materials costs for the increases, according to CNBC. Anheuser-Busch has also said it did not contact its competitors — such as Sam Adams and Molson Coors Brewing Company — about the increased prices.

“Information about our price and cost structure is sensitive and is never shared or discussed with competitors, in line with laws regulating commercial practices and competition,” said AB Inbev Belgium in an email statement.

Anheuser-Busch plans to increase prices by 5.9%, effective March 1, 2012 while Alken Maes will raise prices by about 6%, beginning March 12.

10 Jan. 2012



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