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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.

China-UK. San Miguel Brewery Hong Kong signs beer distribution agreement with UK’s Shepherd Neame

The Hong Kong arm of the Philippines beer brand is introducing the products of the oldest brewery in England to the Macau market, Macau Business Daily reported on January 21.

San Miguel Brewery Hong Kong has reached an agreement with the English Brewery Shepherd Neame to distribute the English beer products ‘Spitfire’, ‘Whitstable Bay Pale Ale’ and ‘Whitstable Bay Blonde Lager’ in Macau and Hong Kong.

The contract was announced on January 21 and is effective until the end of 2018, according to information released by the Hong Kong arm of the Philippines-based multinational.

“The company believes that the distribution arrangement allows it to broaden its product brand portfolio and benefit from a growth in revenue in addition to the sales of the company’s own San Miguel products,” the board of the Hong Kong company explained.

Shepherd Neame is one of Great Britain’s oldest brewers. In spite of being an independent company, it exports beer to more than 35 countries under different brand labels with a production of around 281,000 brewers’ barrels a year.

For San Miguel Hong Kong, this is only one of the first deals to distribute products from other renowned international beer brands in Macau and Hong Kong.

“The Company is also currently in talks with other imported international premium/craft brands for the distribution of their products,” the Board of the company explained.

This initiative by San Miguel Hong Kong comes as part of a strategy to offset the net loss of HK$14.6 million (US$1.87 million) recorded for the first six months of 2015, justified by the termination of the distribution agreement with Anheuser-Busch InBev International, the company that sells beer products under the Budweiser, Corona and Stella Artois brands.

25 Jan. 2016

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