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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.

Heineken-APB Completes Divestment of Stake in Kingway Brewery

•Divestment is in line with APB’s China strategy
•Intensifies participation in the premium segment
Asia Pacific Breweries Limited (APB) today announced that Heineken-APB (China) Pte Ltd (HAPBC) has completed the sale of 365,767,453 ordinary shares in Kingway Brewery Holdings Limited (Kingway Brewery) to GDH Limited (GDH), the controlling shareholder of Kingway Brewery. The transaction was completed at RMB1.08 billion (approximately S$205 million based on current exchange rate), of which S$72.4 million will be recorded as exceptional income. By virtue of its 50% stake in HAPBC, APB’s share will be S$36.2 million.
Mr Roland Pirmez, Chief Executive Officer, APB, commented, “The divestment is consistent with our strategy to intensify our participation in the premium segment of the China beer market. Though we may have divested our stake in Kingway Brewery, we remain committed to the Chinese beer market, particularly in South China where we will soon be opening a new brewery in Guangzhou. Our motivation is to keep ensuring that our prized beer brands, Tiger and Heineken, stay as attractive premium offerings to keep improving our organic growth and profitability.”
The Chinese beer market grew 6.3% to 448 million hectolitres in 2010. Capitalising on the rising affluence and growth opportunities in China, the Group has been actively pursuing the growing premium segment of the China beer market with international beer brands, Tiger and Heineken. Apart from strategic brand investments and marketing, the last few years also saw the Group continually building on and extending its distribution in China.
HAPBC owns a brewery in Shanghai and Hainan. In FY2010, APB’s operations in China broke-even, turning around from a loss of S$5.9 million as reported in FY2009.

6 мая. 2011



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