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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.

Tsingtao Brewery bets big on Southeast Asia

China-based Tsingtao Brewery plans to open new breweries in neighboring countries in Southeast Asia.

Tsingtao Brewery intends to invest around $100m to set up a plant in Bangkok, Thailand. The 200,000 liters capacity plant is expected to commence operations in early 2013.

The plant will be the company's first overseas and the first for the Chinese brewery industry, China Daily reported.

Tsingtao Brewery deputy general manager Ma Ning said the company isn't excluding the possibility of having more plants in the ASEAN (Association of Southeast Asian Nations) region, on top of the plant in Bangkok.

Ning said the company is especially aiming at markets that are large and open enough - those that have comparatively cheap labor and where the Tsingtao brand is already well recognized.

He said Tsingtao has sent a team to look closer at ASEAN and is expected to draft a plan on how its products can be best developed and promoted in the 10 countries of the organization.

Around 1.5% of the company's sales come from overseas and the company expects the figure to increase to 50% in the next three years.

13 Jan. 2012



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