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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. Zhujiang investing 1.8 bln yuan into constructing entertainment complex at old brewery location

Modern youth of China needs new and interesting places of entertainment. So, by 2019 Zhujiang Brewery (Pearl river) is planning to spend 1.8 bln yuan to construct an entertainment complex at an old brewery location. So how will the youth’s dream be fulfilled?

The floor space of all plants of Pearl river company is 243000 square meters, of which 174000 m2 has been bought by the Chinese government. As a result there is 69000 m2 of land left, which can be used by the company.

Environmental impact assessment shows that these 69000 m2 will be allocated for recreation, shows, and other kinds of entertainment.

The main construction will include:
- Beer Experience Center (beer museum, beer exhibition)
- Headquarters of company Pearl river
- Design and art area
- Company stores of international beer brands.
- Art galleries
- Hotels

The brewery will be transformed into Beer Experience Center.
The former workshop of original packages will be changed into shops which can contain conferences and exhibitions. The malthouse will have a new life of a 10-storied hotel in beer culture style.

The original brewery will be transformed into Beer Experience Center. In accordance to the project, Beer Experience Center of 2660 m2 will become a big exhibition hall on the basis of the old brewery architecture. The exhibition will demonstrate processes of saccharification, fermentation and other production stages. These objects are not used in production, but the exhibition center, photos and video can give visitors an idea on beer production.
The entertainment center is expected to become a new tourist attraction.

Established in 1985, Guangzhou Zhujiang Brewery Group Co., Ltd. is a large state-owned enterprise which mainly deals in beer and its relative products. In 2002, InBev purchased 25% of shares in the state-owned brewery.

14 Jul. 2016

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