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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.

Vietnam-Thailand. JSC Masan Group and Singha Asia Holdings Pte. Ltd. officially signed a partnership agreement

The deal to the cost of 1.1 billion dollars allowed receiving 25% of the shares of Masan Consumer Holdings and 33.3% of the share of Masan Brewery.

deal-vt

It is expected that the deal will be closed on 1 March 2016. This agreement gives an opportunity for both parties to expand the market of beverages and food at the regional scale. The main focus was on the Asian countries like Vietnam, Thailand, Myanmar, Cambodia and Laos.
This deal is truly unique as two leading companies merged in order to struggle for consumers together.
The extensive logistic system of Masan will help Singha to target approximately 90 million consumers around Vietnam. The CEO of Singha in turn assured partners that 65 million Thai would be happy to have an access to the goods of Masan Company.
As it was expected in 2015 Masan will open brewery in Hau Giang. This will significantly reduce the logistics costs, because the current location of the brewery is not optimal.

25 Dec. 2015

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