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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

Competition watchdog clears Heineken acquisition of Singapore beer firm

The Competition Commission of Singapore (CCS) has cleared the acquisition of Singapore beer firm GAPL by Dutch brewing giant Heineken, the watchdog said on Tuesday (Jul 19).

GAPL holds the licences for the ABC Extra Stout, Guinness Draught and Guinness Foreign Extra Stout brands in Singapore. The company is registered here but listed in Malaysia.

The deal would see Heineken acquiring the entire issued and outstanding ordinary share capital of GAPL through its subsidiary Heineken Asia Pacific.

“CCS has assessed that the transaction has not substantially lessened competition in the supply of beers in Singapore, which includes ale, lager and stouts,” the watchdog said.

The production and distribution of the beer brands would not be affected, CCS added. “In particular, the distribution of ABC Extra Stout and Guinness Stout in Singapore was, before and after the transaction, still undertaken by Asia Pacific Breweries Singapore, which is a wholly-owned subsidiary within the Heineken Group.”

As such, the acquisition has not changed the “relative bargaining power” between Heineken and its customers that would allow the brewer to raise prices or impose exclusivities, the watchdog said.

CCS said it issued its clearance decision on Jun 30, after reviewing Heineken’s submissions and feedback from customers and competitors during a public consultation held from Nov 17 to 27 last year.

19 Jul. 2016

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