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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.

Ethiopia Says Heineken to Acquire Two State-Owned Breweries

Heineken NV, the world’s third-largest brewer, will buy two Ethiopian state-owned beer makers for 2.7 billion birr ($160 million), the Horn of Africa country’s privatization agency said.

Heineken, based in Amsterdam, will purchase Bedele Brewery SC for 1.4 billion birr and Harar Brewery SC for 1.3 billion birr, Wondafrash Assefa, spokesman for the Private and Public Enterprises Supervising Agency, said in a phone interview today from Addis Ababa, the Ethiopian capital.

“Heineken indicated in their bid document they will expand Harar and bring in new products,” he said.

Heineken can’t comment because it hasn’t received written confirmation from the agency that its bids were accepted, John- Paul Schuirink, a company spokesman, said in an e-mail today.

Beer consumption in Ethiopia, Africa’s second-most populous nation, is expected to grow by about 15 percent every year for the next five years, Access Capital, an Addis Ababa-based research group, said in a report last year. BGI Ethiopia, the country’s biggest brewer by sales, accounted for about half of the 300 million liters (79 million gallons) of beer sold in the 12 months to July 7, 2009.

Heineken bid more for Bedele than SouthWest Development Plc of Ethiopia; Carlsberg A/S, the Copenhagen-based beer maker; and BGI Ethiopia, a unit of French brewer and vintner Groupe Castel, Wondafrash said on March 29. There were no other offers for Harar, he said.


The breweries were sold even after Bedele earned a profit of about 100 million birr last year and Harar posted net income of more than 50 million birr, according to Wondafrash.

“It’s not about the profitability,” he said. “It’s that the government should not run these factories because the private sector can run them more efficiently.”

Ethiopia is selling state-owned companies to private investors as it seeks to diversify its economy. The Horn of Africa nation, the continent’s biggest coffee producer, relies on agriculture to generate 43 percent of its economic output, according to the CIA World Factbook.

The government plans to sell 50 companies by mid-2015, including agricultural, food and printing businesses, according to Wondafrash.

Communist Nationalization

Most of Ethiopia’s private businesses were nationalized in the 1980s under the former Communist Derg regime. That government was toppled by the current ruling Ethiopian People’s Revolutionary Democratic Front, a party with Marxist roots that has shifted toward a market-based economy since it came to power in 1991. The EPRDF government has sold 214 public enterprises since 1995 for 3.14 billion birr, according to the agency’s website.

“The process has been gradually developing,” Wondafrash said. “We started with small enterprises, now we are transferring big ones.”

The board is assessing five bids for another state-owned beer maker, Meta Brewery, Wondafrash said, without providing further details.

Bedele, situated in western Ethiopia, has the capacity to produce 300,000 330-milliliter (0.7-pint) bottles of beer per day, according to the agency’s website. Harar Brewery, which is in the east of the country, can produce 200,000 hectoliters (5.28 million gallons) of the beverage annually, it said.

4 мая. 2011



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