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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.

India. UB plans to solve water problem and introduce Kingfisher Buzz on a pan-India basis

United Breweries, India's largest beer maker, plans to be a water neutral company within the next 10 years, according to a top company executive.

“Our aim is to be a water neutral company by 2025. There are breweries where we have put back water, we have breweries which are water negative or which are water neutral but as a company we are not there yet. So that is definitely the road ahead,” United Breweries senior vice president marketing Samar Singh Sheikhawat told Deccan Herald.

It will happen through rain water harvesting, through water recycling, through water conservation, Sheikhawat added. Availability of water is one of the key issues for the company when it comes to setting up a plant.

With many of the states in the country including Maharashtra and Telangana facing acute water shortage, the company is facing problems, according to Samar Singh Sheikhawat.

The company, which had recently forayed into the ready to drink (RTD) segment through Kingfisher Buzz, is bullish about its prospects going forward. “We hope to get 20-30% market share in the first year and about 40-50% in the second year and hope the industry will grow with our entry,” Sheikhawat said.

The company aims to introduce Kingfisher Buzz on a pan-India basis over the next 12-18 months, Sheikhawat added.

United Breweries manufactures Kingfisher Buzz at its Taloja facility in Maharashtra.

11 Mar. 2016

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