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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.

Thailand. ThaiBev joins battle for foreign beer brands

Thai Beverage (ThaiBev) is one of four companies vying for three beer brands put on sale by Anheuser-Busch InBev, according to Financial Times.

The newspaper reported last week that along with ThaiBev, the other three companies qualified for the next round of bidding are Japan’s biggest brewer Asahi, Bain Capital and PAI Partners. The brands are reportedly worth 2.5 billion pound.

The Belgian brewer which is the world’s largest beer company by sale volume is selling Peroni, Grolsch and Meantime beer brands to facilitate its takeover bid for SABMiller, the world’s second largest. AB InBev’s US$108 billion takeover bid raises concerns for regulators in a number of countries like the United States and European Union.

ThaiBev, the brewer of Chang beer, is one of the largest beverage and food companies in Southeast Asia. It reaped Bt121 billion in total sale revenue in the first nine months of 2015.

25 Jan. 2016

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