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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.

Heineken 2010 Sales of Beer By Volume Fall More Than Analysts Estimated

Heineken NV, the world’s third- largest brewer, said 2010 beer sales fell more than analysts had anticipated as developed markets lagged behind growth elsewhere.
Organic sales volume fell 3.1 percent, the Amsterdam-based company said in a statement today. That was more than the 2.8 percent forecast by analysts surveyed by Bloomberg. Full-year earnings before interest and taxes, excluding one-time items, rose to 2.61 billion euros ($3.5 billion). That beat a 2.52 billion-euro median estimate. Profitability was helped by 280 million euros in pretax savings from a cost-cutting program.
Heineken said today that it will focus on investing in and selling more profitable beer in Europe and the U.S. to deliver “value growth.” The shift will affect the company’s earnings development in the near future, it said, without being more specific. The company expects ongoing cautious consumer behavior in the U.S. and Europe.
Brewers including Heineken are cutting costs in developed markets and looking to developing countries to improve profitability and increase sales. Growth in traditional markets including the U.S. and Europe has been stinted by competition and government cost-cutting measures, which are holding back consumer spending. Heineken, the maker of Amstel and Newcastle Brown Ale, reported a 2.2 percent decline in organic revenue, which excludes acquisitions.

16 Фев. 2011



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