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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.


Sri Lanka to allow low-tax imports for flood hit beer firm: report

Sri Lanka will allow Lion Brewery franchise holder or Carlsberg in the country and Lion Beer imports at lower duty, following flood damage to its production facilities in Colombo, a report said.

Sri Lanka's The Sunday Times newspaper said customs duty for beer with alcohol of less than 5 percent has been cut to Rs129 per litre from Rs500 and for beer with over 5 percent alcohol to Rs246 from Rs500.

Lion Beer has said that it had arranged with Carlsberg group breweries to produce its stuff.

Due to high tax protection, Sri Lanka does not import a large volume of beer. Alcohol and cigarettes are also import tax protected allowing large near monopolies to emerge.

With imports going up, government import duty revenues can go up over the next few months. The newspaper said about 5 million litres of beer could be imported under the concession. The concession appeared to be exclusively given to the firm, the newspaper said.

Beer also draws high excise duties, regardless of whether it is imported or not, with beer drinkers among top taxpayers in the country, along with cigarette smokers.

Last year, customers of Ceylon Beverage Holdings group paid Rs20.2 billion in excises and the firm paid Rs938 million in income taxes.

3 Aug. 2016



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