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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.

drinktec

Peroni boosts SABMiller sales in gloomy UK beer market

British drinkers’ growing thirst for Italian lager Peroni has helped brewer SABMiller buck the trend of falling beer sales in the UK.
Pub groups have fallen on hard times as cash-strapped drinkers have flocked to cheap supermarket deals.
But the world’s second biggest brewer revealed sales of Peroni on tap increased by more than 10 per cent as pub goers showed no qualms about forking out ?5 or more for a pint.

Italian job: Profits for the six months to September rose 12 per cent to ?2.28billion
Other big sellers included Pilsner Urquell, which grew by double digits. And the firm more than doubled sales of Kozel, a Czech pilsner launched in 2010 and available exclusively on draught in the UK.
Gary Haigh, head of the brewer’s UK subsidiary Miller Brands, said sales of premium lagers had picked up as pubs – particularly in towns and cities – spruce up their image.

He said the brewer also had to contend with the miserable summer and the ‘hospitality week from hell’ as workers were urged by London’s mayor Boris Johnson to work from home during the first week of the Olympics.
He said: ‘It’s been the year to remember for all the wrong reasons for the industry – fortunately we managed to buck the trend.’
It was a different story over at Aim-listed brewer Young’s, however. The firm (up 19p at 712.5p) said it made the most of the UK’s ‘summer of celebration’ as promotions around the Queen’s Diamond Jubilee and Olympic Games boosted trade. The group, which has 237 pubs across London and the south of England, said the summer’s events helped it overcome a rain-soaked first quarter, with half-year underlying profits rising 11.2 per cent to ?13.9million.
The robust results for SABMiller also came despite the rising cost of barley used to make beer and adverse currency swings. Profits for the six months to September rose 12 per cent to ?2.28billion, with sales up 11 per cent to ?17.5billion.
Further afield the London-based company enjoyed strong profit growth in emerging markets in Africa and Latin America.
But SAB didn’t have it all its own way, with a 5pc drop in profit growth in Europe. As the brewer reports in US dollars the weakening euro also tarnished its figures.
The firm, which spent ?7.4billion last year on Foster’s, said the Australian company ‘contributed significantly’ to first half growth.
It lifted its interim dividend by 12 per cent to 24 cents (15p) a share.

12 Dec. 2012

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