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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.

MillerCoors sees domestic sales decline

MillerCoors’ U.S. domestic sales to retailers declined 2.6 percent for the fiscal year ending March 31, with a 1.4 percent drop in the fourth quarter, according to a trading update issued Tuesday by SABMiller plc of London, one of the beer brewing joint venture’s corporate parents.
Chicago-based MillerCoors operates a brewery in Trenton, which is in northeastern Butler County, where it employs 560 people. The brewery is the largest in Ohio.
SABMiller management said the overall market for MillerCoors’ “remains challenging.”
Premium light sales to retailers were flat in the fourth quarter with growth in Coors Light accompanied by improved Miller Lite performance, with volumes nearly level.
The below-premium portfolio declined in the low single digits in the fourth quarter amid “continued industry uptrading,” according to SABMiller.
The Tenth and Blake Beer Co., MillerCoors’ craft and import beer division, experienced double-digit growth, mainly driven by the strong performance of the Blue Moon and Leinenkugel brands and associated seasonal craft brand extensions. Domestic sales to wholesalers for MillerCoors declined 2.7 percent for the year, with a 2.5 percent decline in the fourth quarter, SABMiller said.
SABMiller will report formal full year results on May 19.
MillerCoors is jointly owned by London-based SABMiller Plc and Molson Coors Brewing Co. (NYSE: TAP),It competes against other brewers such as Anheuser-Busch InBev, Heineken NV, United Spirits Ltd. and United Breweries Ltd.

20 Апр. 2011



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