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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.

Russia takes first step to curb strong beer sales

Russia has passed an early reading of a bill aimed at restricting sales of strong beer in a move that could hit brewers for a second time following a hike in excise duties last year.
The country's state Duma said it had passed an initial draft of the bill that could limit sales of beer stronger than 5 percent as part of the state's drive to cut down on alcohol abuse.
It must pass two more readings and win Kremlin approval to become law.
If passed, the bill would ban the sale of strong beer altogether from outdoor kiosks, airports and train stations. Shops would have to stop selling it between 11pm and 8am.
The move is likely to erode brewers' Russian sales growth, which has slowed since Russia raised excise duties by 200 percent in January last year.
Danish brewer Carlsberg, owner of Russia's best selling beer brand Baltika, this week warned of modest growth and squeezed margins in Russia.
SABMiller told Reuters last year that 2010 would be its third straight year of falling Russia sales.
"Beer stronger than 5 percent is not a very large share of the market, so the consequences of these restrictions will not be catastrophic," a Baltika spokesman told Reuters, although he added that it made up about a third of the company's portfolio.
Russia has been seen as a high-growth emerging market for global brewers seeking to expand out of increasingly health conscious developed countries.

22 Фев. 2011

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