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4-2017

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 named preferred bidder for two breweries in Ethiopia

Heineken N.V. today announced that the government of the Federal Democratic Republic of Ethiopia has named the company as the preferred bidder for the Bedele and Harar breweries. The winning bids for the breweries were US$85 million and US$78 million, respectively. Heineken will now work with the government to finalise the transaction. The decision follows Heineken’s participation in the public auction for the two breweries.

Commenting on today’s announcement, Tom de Man, President of Africa and Middle East for Heineken, said:

“We are delighted that our offer to acquire these two breweries has been selected as the winner by the Ethiopian Privatization and Public Enterprise Supervising Agency. This transaction represents another important step in Heineken’s strategy of increasing its exposure to emerging markets and we look forward to working with the Ethiopian government to grow the Ethiopian beer market and economy. Ethiopia is one of Africa’s most promising beer markets and our expansion into this market underlines our commitment to Africa and strengthens our platform for continued growth in the region.”

The two breweries have a combined market share of 18% with brands such as Bedele, Harar, Hakim Stout and Harar Sofi (malt).

Ethiopia is Africa’s second most populated country with 85 million people and its beer market (3 million hectolitres in 2010, source Plato) grew approximately 20% per year over the past 5 years, compared to a GDP growth of 8%. Beer and non-alcoholic malt consumption in Ethiopia was approximately 4 litres per capita in 2010, which is well below the global average of 27 litres and below beer consumption in neighbouring countries, such as Tanzania (7 litres), Uganda (9 litres) and Kenya (10 litres). In addition to a fast growing population and a developing beer market, the country’s political stability and improving economy, make Ethiopia a promising, long-term growth market for Heineken in Africa.

6 мая. 2011

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