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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.

US. Optimism Growing for Restaurants

TWST.com and Charlie Duerr of Nation's Restaurant News summed up the work of KeyBanc Capital Investment analyst Brad Ludington's view of the restaurant industry. Ludington believes casual dining restaurants have been particularly successful at facing current challenges and continue to engage consumers to keep business moving. These efforts bode very well for brewpubs, better beer bars and packaging brewers who build brands and sales in casual dining restaurants.

The five reasons restaurants can be optimistic are:

1. Consumers are coming back to restaurants.

2. Social media marketing is working.

3. There are still opportunities for growth.

4. Restaurants can work around inflated commodity costs.

5. Consumers are still spending.

Ludington specifically noted the entertainment and convenience that restaurant experiences provide, and that gas prices haven't had a huge impact on spending and appear to be stabilizing.

We saw beer sales from brewpub companies grow 6.9% in 2010. Now many brewpubs have branched into some packaging in growlers and/or off-premise sales in cans, bottles and kegs, but in an environment when many brewpubs sell all the beer they can make, the growth is particularly encouraging. In some cases the brewpub is the only place you can get specific beers, and that has an appeal all its own for people looking for a unique experience. Craft brewers also tend to be experienced and knowledgeable about engaging their customers through social media and word of mouth, so the upside of these trends should be greater than many other casual dining outlets.

Time to go the the pub for some beer and food? It is for me. See you there.

Paul Gatza

11 Июн. 2011



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