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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.

China. Lanzhou Huanghe Enterprise has stopped the production in Jinquan

On14 March 2016 Lanzhou Huanghe Enterprise Co., Ltd., the representation office of the Yellow River Group in Lanzhou, at an extraordinary meeting of the Board of Directors took the decision to close the production of Jinquan West Brewery Co., Ltd.

The production system has become outdated and too small for the needs of modern market, since Jinquan Brewery was founded in the 80s. The equipment of the brewery has become inefficient and energy intensive, the production process will be very difficult to upgrade. The brewery hardly produces 10,000 tons of beer with a design capacity of 20,000 tons per year.

Therefore, to ensure the quality of its products, the company took the decision to close the production and to authorize the Yellow River Beer Group to use its property, including the equipment. It will be transferred to other companies or completely utilized.

5 Apr. 2016

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