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4-2017

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.

UK: BBPA bemoans Chancellor’s duty snub

The British Beer & Pub Association has branded the UK Chancellor's autumn statement a "missed opportunity" after he ignored calls to review the alcohol duty escalator.

George Osborne announced a series of measures to help the UK's struggling economy today (5 December) - including cancelling a planned fuel duty rise - but over-looked alcohol duty. Since 2008, under the Labour-introduced duty 'escalator', alcohol taxes have automatically increased at least 2% above inflation annually.

Despite a vote in Parliament last month backing a review of the escalator, Osborne was silent on the controversial mechanism.

“This is a missed opportunity – employment could be boosted by 5,000, this year alone, with a freeze in beer tax – mostly jobs for younger people in Britain’s pubs," said BBPA chief executive Brigid Simmonds. "The Coalition should distance itself from the previous Government’s tax policy, and the Chancellor should now heed calls from MPs of all parties for a review."

However, the BBPA welcomed the extension of small business rate relief to April 2014, which it said "will support pubs, as will other measures to support business".

6 Dec. 2012

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