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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.


Myanmar Brewery to boost beer output to slake domestic thirst

Myanmar Brewery will ramp up its beer production capacity by about 10% to keep up with increasing local consumption amid economic growth.

The group member of Japan's Kirin Holdings will spend hundreds of millions of yen (100 million yen equals $917,200) to add equipment such as fermentation tanks, a key component in beer brewing, at its plant in Yangon. With the installation work already underway, the new equipment is slated to begin operation by year-end to increase production of the signature Myanmar Beer brand. This will raise the company's capacity, which stands at just over 200,000 kiloliters a year, by 30,000kl.

Myanmar Brewery sold 220,000kl of beer last year, commanding 80% of the Southeast Asian nation's market. Beer demand is growing, particularly among young people, with sales more than doubling over the last three years.

And competition is heating up, with Danish brewer Carlsberg and the Netherlands' Heineken each launching production with local partners last year. Both have been lifting sales, offering low-priced products in addition to their signature brands.

13 May. 2016



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