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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 SABMiller sees steady growth for Africa

Multinational brewer SABMiller (SAB.L) (SABJ.J) sees volume growth of 8 percent a year in Africa, its regional head said on Tuesday, as demand is expected to continue growing on the continent.
Mark Bowman, managing director of SAB Miller Africa, also told reporters on a teleconference call that the brewer was unlikely to make any big-ticket acquisitions on the continent in the near future.
The London-based brewer expects "organic volumes" for beer and other beverages to grow at about 8 percent a year in Africa, he said, referring to growth excluding the impact of acquisitions or divestments.
"We're optimistic of growth in the medium, short and long term. There are likely to be bumps along the road, because Africa is a different place to do business," Bowman said from Miami, where he is attending an industry conference.
With increased investor interest in Africa, the continent has become "the flavour of the month" Bowman said, making it more difficult to make acquisitions.
"There's nothing particularly on our radar at this stage and if it were, it would be quite small in nature."
Home to about 1 billion people, Africa boasts dozens of fast-growing economies and an emerging middle class and is increasingly seen as the next big destination for global investment.
SABMiller beat forecasts to report a 3 percent rise in quarterly volumes last month, boosted by Africa and Asia. By focusing on emerging markets, the brewer has escaped the worst of the economic downturn, which hit developed markets harder. (Reporting by David Dolan; Editing by Greg Mahlich)

23 Фев. 2011



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