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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.

Diageo to expand Dublin brewery in 153 mln-euro deal

British drinks giant Diageo Plc is to expand its Guinness brewery in central Dublin in a 153 million-euro ($194 million) investment to focus all its Irish brewing on one site, while plans to build a new super brewery remain on ice.

The London-based group said on Thursday the move will boost capacity by nearly 50 percent at its historic St James's Gate brewery close to the river Liffey where Arthur Guinness moved his brewing operations in 1759 to brew his eponymous stout beer.

The expansion at the site in the Irish capital will be completed by the end of 2013, while the closure of Diageo's two other smaller Irish breweries at Dundalk and Kilkenny in 2013 will lead to the likely loss of just under 100 jobs.

After months of talks with Dublin City Council, Diageo came up with its plan to expand brewing on the 55-acre site to boost annual capacity to 7 million hectolitres from the current 5 million. The site brews Guinness for all markets in Europe and also the United States along with other beers.

Diageo will retain a long-term option on land at Leixlip on the outskirts of Dublin, which is owned by descendants of the Guinness family, where it had planned to build a super brewery.

Back in 2008 Diageo announced its 650 million-euro plan to build this super brewery and sell part of the St James's Gate site to developers, but these plans were later put on hold due to falling beer markets in Europe and the sharp fall in Dublin property prices.

13 Jan. 2012



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