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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.

drinktec

Diversification key to globalization for Asian companies

As Asian companies aspire to grow, they become more inclined to look beyond their home turf. Some of the successful forerunners present at the FT-Nikkei Asia300 Forum on Monday morning embody the importance of companies diversifying their business portfolios.

The top Philippine brewer San Miguel established its first overseas footprint in Hong Kong in 1948, and today it is the only one left in the territory. Seeking for decades to be competitive in the "showcase of all breweries of the world," as Ferdinand Constantino, San Miguel's senior vice president and chief financial officer, describes it, the company expanded further to mainland China, Indonesia, Vietnam and Thailand, mainly through acquisitions, and turned them into a "platform for San Miguel" by leveraging its brand recognition. Today, the brewer also exports to about 80 markets, not only in Asia but in North America and Africa as well.

In recent years, San Miguel's diversification has gone beyond its core business of beer, food and packaging -- and into infrastructure. The main driver was the fact that the company was controlling 95% of the local beer market, and infrastructure in the Philippines was "very, very, inadequate." Taking advantage of the recent two administrations' moves to privatize formerly state-owned energy and infrastructure assets, the company diversified into a very different field.

26 Apr. 2016

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