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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.

Thailand: Costs, beer weigh on ThaiBev’s full-year profits

Chang beer sales rise, but ThaiBev says division still in red
Higher selling costs and ongoing losses in beer pinned back ThaiBev's profits in 2010, despite a strong rise in sales.
ThaiBev's operating profits fell by 3% for the 12 months to the end of December, to THB15bn (US$489m), as higher raw materials costs eroded gains from a 12% increase in net sales, to THB121.3bn.
Further losses in the Chang brewer's beer business also constrained the Thailand-based drinks maker during the year. The beer division's losses equalled those of the previous year, at THB1.6bn, versus profits of THB338m in 2008.
However, lower finance charges helped ThaiBev to increase its full-year net profits by 1%, to THB10.72bn, which prompted a 6% increase in the group's annual dividend payment.
ThaiBev's president and CEO, Thapana Sirivadhanabhakdi, concentrated on the company's top-line performance. "We have seen stronger sales across all our business segments, boosted by the marketing and growth strategies that have been rolled out throughout the year,” he said.
Despite the beer division's ongoing losses, the business reported a 12% increase in net sales to THB33.7bn. The rise reflected strong demand for Chang across Asia and the US, although it was not enough to claw back all the ground lost from the group's 30% drop in beer sales between 2008 and 2009.
Spirits sales also rose in 2010, by 10.5% to THB77bn.
25 Фев. 2011



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