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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 to get Mexico, cost savings boost in 2010

Heineken NV (HEIN.AS), the world's third-largest brewer, should report sharply higher 2010 earnings on Wednesday as a Mexican acquisition and cost savings outweigh sluggish volumes in mature markets.
Investors will also be keen to hear the Dutch brewer's outlook on rocketing raw materials costs -- likely to be a hot issue in 2011. The futures price for malting barley has risen 51 percent since the launch of such a contract in May EOBc1.
Heineken's improved results will come despite volumes under pressure from the company's heavy exposure to mature western European markets and some evidence of market-share loss in Russia and the United States.
Rival SABMiller (SAB.L), with a heavy presence in faster-growing African and Latin American markets, said last month its lager volumes rose 3 percent in the final three months of 2010.

Graphic on top global brewers

Heineken, for whom western Europe made up over half of revenues in 2009, has reported declining volumes on a like-for-like basis in the first nine months of 2010, albeit at a slowing rate -- a trend expected to continue.

16 Фев. 2011



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