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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.

AB InBev gets “Competition Commission of India” nod to acquire SABMiller

Breweries major AB InBev has received fair trade regulator CCI's approval to acquire its close rival SABMiller for about 71 billion pounds.

Last year, Anheuser-Busch InBev (AB InBev) said that it had completed an agreement to acquire SABMiller Plc, making it one of the largest deal in the breweries sector.

Belgium-based AB InBev is engaged in production, marketing and distribution of beer, among others.

Its portfolio include brands like Budweiser, Budweiser Magnum, Corona, Hoegaarden, Stella Artois and Leffe.

In a tweet today, Competition Commission of India (CCI) said it has approved the "acquisition of SABMiller Plc by Anheuser-Busch InBev SA/NV".

SABMiller, founded in 1895, has more than 200 beer brands in its portfolio and 70,000 employees in over 80 countries.

In India, it is primarily engaged in the production, marketing and distribution of beer. Some popular brands in its kitty are Knockout, KO, Haywards, Royal Challenge and Foster's.

For this case, CCI considered "market for the production and distribution of beer in India" as the relevant market.

3 Feb. 2016

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