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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. Heineken has opened a new brewery with a capacity of 300,000 tons

The official launch of the new brewery Heineken Ltd Jiashan took place on 4 February. The launch of the new brewery is important not only for Zhejiang Province but for China as a whole.

Heineken is the first foreign company which was allowed to build a brewery in the province. The projected capacity of the brewery is 300,000 tons per year. In the first stage, right after the launch, the brewery will be loaded only half and will produce 150,000 tons of beer per year.

Jiashan administration provides unprecedented support to the company, including employment, taxation, and transport communications.

Heineken (Zhejiang) Ltd. is the third branch of the corporation in China after breweries in Guangzhou and Hainan.

According to Chen Chunyang, General Manager of Heineken Asia Pacific Breweries in the East China region, the brewery used the best European technologies. All raw materials are also imported from abroad. This is likely to keep the quality and taste characteristics of Heineken beer.

The construction of the brewery is a part of the company's strategy. In 2016, the company will keep on conquering the market of premium beer in China and responding to the increased demand for high-quality beer.

8 Feb. 2016

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