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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 gets all clear to increase Vietnam investment

Danish brewer Carlsberg has been given the all clear by Vietnamese authorities to increase its stake in Vietnamese brewer Habeco to 30 percent, a company spokesman told Reuters on Monday.

Carlsberg, the world's fourth-largest brewer, bought 16 percent in state-owned Habeco for 600 million Danish crowns ($102.25 million) in 2008.

In 2009 it signed a memorandum of understanding with the aim of increasing the investment to 30 percent.

"We expect to have it finished before the year-end. We have been told that we can proceed with the process, a process that has been stalled for a long time," said Carlsberg communications director Jens Bekke, without giving more details.

The stake will cost about $72.4 million, Vietnamese newspaper Dau Tu, which is published by Vietnam's Ministry of Planning and Investment, reported. Carlsberg declined to comment on the price.

The brewer has been in Vietnam since 1993 and the country is seen as a key market in fast-growing south-east Asia.

Asia accounted for 18 percent of Carlsberg's total sales volume last year and 12 percent of its operating profit.

In October, Carlsberg said it was taking full control of Vietnam's Hue Brewery, buying the 50 percent it did not already own.

Carlsberg's market share is roughly 33 percent in Vietnam and it sells beer under the Halida, Huda, Ha Long Hanoi and Viet Ha Bia Hoi brands as well as the Carlsberg brand. ($1 = 5.8682 Danish crowns) (By Johan Ahlander and Teis Jensen; Editing by Helen Massy-Beresford)

13 Nov. 2012



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