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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. Chongqing Brewery announced the closure of the brewery in Liupanshui

Chongqing Brewery announced the closure of the only brewery in Liupanshui city. The reason of production suspension is the decrease of the brewery’s profitability and policy of reducing the number of redundant businesses.

The capacity of Liupanshui brewery is 60000 tons. The sales were at the level of 50000 tons. As at 31 December 2015, the sales reached 86.2965 million yuan, i.e., 2.59% of the consolidated profit of Chongqing Brewery Group. 3.72 million litres of beer have been sold, representing 3.76% of the total sales of the company.

According to the company’s management, the purchasing power of the population in the region and the volume of beer consumption began to fall. Beer prices here are much lower than in other provinces and the competition is very high. The maintenance costs of obsolete equipment of the brewery are too large and have a negative impact not only on the work of the regional brewery, but also on the financial results of the company.

Last November, Chongqing Brewery decided to optimize production by closing the excessive amount of breweries and the modernization of production.

29 Feb. 2016



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