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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.

Brewer calls for balancing act on duty

SABMiller has called on the UK government to rebalance alcohol duty to encourage consumers towards lower-strength alcohol products.
In the last 13 years, beer duty has increased in real terms by approximately 20%, whereas the duty on spirits has fallen by 15%.
This change has not only been a perceived driver in shifting consumers to higher-strength drinks, but it has also compounded the challenges facing the beer sector, contributing, according to the brewer, to an increase in the rate of pub closures.
"Nonetheless, the beer industry is a far more important source of jobs in the UK than spirits, wine and cider production combined," said a statement from the world's second-largest brewer.
Kristin Wolfe, head of alcohol policy at SABMiller, the world's second largest brewer, said: "We propose that the alcohol duty regime is rebalanced to differentiate between the consumption of higher and lower strength alcohol products.
"The aim should be to nudge consumers towards lower strength products, such as beer. This will help protect jobs, support important domestic businesses and reflect the higher risks associated with higher-strength categories of products.
"This policy is pursued in many other European countries. In France, for example, each degree of alcohol in spirits is taxed over 7 times higher than for beer, the average for EU countries is that spirits are taxed at 3.2 times the rate for beer but the ratio is only 1.4 in the UK."
Research carried out by the Centre for Economics and Business Research, commissioned by SABMiller, into alternative excise policies revealed that more than 3,600 jobs in pubs could be saved, yielding an additional ?1.0 billion in tax revenue.
9 Фев. 2011



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