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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.

India. UBL starts beer supply from acquired Rajasthan brewery

Liquor baron Vijay Mallya-led United Breweries (UBL) has commenced supply of beer from a brewery in Rajasthan it acquired in 2014.

In a BSE filing, United Breweries said it has commenced "supplies of beer upon commissioning of the company's brewery located at Shahjahanpur, Rajasthan".

In September 2014, UBL had acquired brewery assets of Pacific Spirits Pvt Ltd for Rs 105 crore.

The deal involved acquisitions of assets such as land, building and plant/equipment of Pacific Spirits with its brewery at Shahjahanpur in Alwar, Rajasthan.

At the time of the deal, UBL had said: "The company will be able to expand its production capacity in Rajasthan to cater to the expected further growth in the market... The company will further invest to make the brewery operational before the coming season. This acquisition will also create additional employment opportunities in the vicinity upon the brewery becoming operational."

Earlier this week, UBL promoter Mallya resigned as chairman of United Spirits. Mallya's exit from the board of United Spirits ended a long-drawn tussle between him and the majority owner, UK's Diageo, following allegations of irregularities on loans given to UB Group companies.

United Breweries sells its products under the brand name Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Blue, Kingfisher Red, Zingaro, UB Export and Kalyani Black Label Strong, among others.

29 Feb. 2016



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