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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.

Russia. A number of distributors are on the verge of giving up beer trade

A quarter of the wholesalers may stop beer distribution. Based on its own data and information of trade unions "Opora Rossii" estimated that it happened because of the need to join the Unified State Automated Information System (USAIS).

Alexei Nebolsin, a member of the Bureau "Opora Rossii", noted that beer distributors are afraid of high prices for software, the lack of specialists and other difficulties. He estimates that about 2500 of the wholesalers are ready to exclude beer from the portfolio, mostly small and medium-sized enterprises which account for about 12.5 % of all beer sold in the country.
"Vedomosti" reported that according to "Opora Rossii" assessment half of Russian beer sales is provided by 10,000 distribution companies which have no other alcoholic beverages in their portfolios (e.g. wine and vodka are already included in USAIS).

25 Dec. 2015

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