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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. AB InBev plans to close a brewery in Zhejiang Province

It became known today that Anheuser-BuschInBev, one of the leaders of the Chinese beer market, plans to close its brewery in Zhejiang Province, Zhoushan district.

On 11 December 2015, AB InBev Company started the construction of a brewery in the district of Wenzhou, Zhejiang Province, with an area of 500 acres and a design capacity of 1.2 million tons of beer a year. It was invested $40 million during the first stage. The total investment in this project is $2 billion. It is one of the largest investment projects in China.

Once the brewery is put into operation, the Zhoushan brewery will be closed.

According to industry analysts, the closure of the brewery is just the beginning. Subsequently, other similar small factories can also be stopped. AB InBev has 50 breweries in Asia Pacific region. There are 4 major Breweries (500000 tons and more), 6 large plants (300-500 thousand tons), 16 medium-sized enterprises (100-300 tons) and 23 small (less than 100,000 tons) in the 6 regions of China.

AB InBev China

Previously, the company has already closed 4 breweries in China in order to optimize production.

9 Mar. 2016



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