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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. Carlsberg leads petition against draught beer crackdown

Representing around 4500 bars and restaurants, Carlsberg Myanmar plans to send a petition to the government by the end of August, in protest against a recent crackdown on serving draught beer without the right papers, a company spokesperson said.

Beer stations across the country have received letters from the General Administration Department warning that the FL17 licence – the standard alcohol retail licence – does not cover draught beer sales.

Of around 7000 beer stations serving draught beer only 2500 hold the right licence – FL9 or FL10 – while the home affairs ministry, which is responsible for issuing these licences, said it will not issue any more “for now”.

This has caused alarm among beer station owners, who have been allowed to sell draught beer under their FL17 licence for years, and believe their customers will go elsewhere if they stop selling beer on tap.

Anthony Clark, managing director of Myanmar Carlsberg Company said he would support his customers by petitioning on their behalf.

“One of our ambitions at Myanmar Carlsberg is to be the most professional brewer in Myanmar,” he said. “This includes providing the best customer service of all the brewers and also being ready to support our customers when they need our help, such as when they face these types of difficulties.”

Mr Clark said the letter will ask the Minister of Home Affairs, Lieutenant General Kyaw Swe, to lift the restrictions on FL17 licence holders.

“We hope to represent as many of the 4500 affected bars and restaurants as possible. If the petition is successful, the minister may revisit the directive and lift the restriction on FL17 holders in light of the impact it has on the livelihoods of those who own or who are employed in those bars and restaurants,” he said.

FL17 licence holders pay K2.4 million every year in licence fees, while FL9 licences cost K1.2 million in annual fees.

14 Jul. 2016



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