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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.

The largest brewery of Kazakhstan can be bought for $80 million

The starting price of the Shymkentpivo brewery is about 28 billion tenge. ATF Bank sells the property of the arrested businessman Tokhtar Tuleshov.

The lot, published on the website of the Unified electronic trading platform, states that the whole property complex of the brewery is put up for auction. The starting price is 27 984 835 000 tenge (about $80 million). The guarantee fee for participation in the auction is 1 399 241 750 tenge.

Applications are accepted until April 11, and bidding will be launched on April 12 at 10 a.m.

It was reported earlier that last year they wanted to take Tuleshov’s brewery for a debt estimated at 100 million dollars to ATF Bank.

Well-known businessman Tokhtar Tuleshov, now the former owner of the Shymkentskiy brewery, on 30 January was detained during a special operation of the security forces. The case of Tuleshov was classified as “top secret”.

Quite recently, the brewery has paid off debts on the salary to workers of the brewery. The labour inspection had a statement of the debt of 27 million tenge. According to Bastar Eskaraev, the chief state labour inspector of the South Kazakhstan region, this debt is already closed.

For many years, the volumes of Shymkentpivo had been gradually reducing. Judging by the data of the regional statistics, the downswing at the brewery got worse, as over the year it has fallen by a quarter to 0.31 million hectolitres. However, 10 years ago the brewery produced about 1 million hectolitres of beer per year.

The bulk of sales Shymkentpivo are in South Kazakhstan region. The downswing  partially resulted from Carlsberg, Perviy Pivzavod and other producers’ expansion to the market of packed and draft beer in the south of Kazakhstan.

However the company still holds good positions on the draft beer market in the south of the country. And brand Shymkentskoe is one of the best loved among the Kazakhstani. If the company acquires an efficient manager most probably it will overcome the challenges and resume the operation.

 

1 Apr. 2016

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