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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.

Carlsberg says to own 30 pct of new China venture

* Danish brewer forms joint venture to expand China business
* It will own 30 pct of new J/V with Chinese partners
* New company will operate 12 breweries in China (Adds details, quote, share price)

COPENHAGEN, Aug 1 (Reuters) - Danish brewer Carlsberg (CARLb.CO) said on Monday it would own 30 percent of a new joint venture to be formed by Carlsberg, its Chongqing Brewery unit and Chongqing Light Textile Holding to boost its China business.

Carlsberg became the biggest shareholder in Shanghai-listed Chongqing Brewery (CBC) in 2010 with a stake of nearly 30 percent and expressed interest in expanding the Chinese operations in cooperation with CBC's other main owner, Chongqing Light Textile Holding (CLT).

"CBC will own 51.42 percent of the joint venture, CLT 18.58 percent and the Carlsberg Group will own 30 percent," Carlsberg A/S said in a statement.

The venture, Chongqing Xinghui Investment Co., Ltd, will operate 12 breweries in China located in the provinces of Chongqing, Sichuan, Guangxi, Guizhou and Hunan, Carlsberg said.

CBC will contribute its ownership of five breweries, CLT will contribute seven breweries and the Carlsberg Group will make a cash contribution of about 160 million Danish crowns ($30.90 million).

"The transaction is conditional upon a number of steps and approvals by authorities and minority shareholders," Carlsberg, the world's fourth biggest brewer, said.

Shares in Carlsberg were little changed, up 0.1 percent at 1440 GMT on a slightly soft Copenhagen bourse .

2 Авг. 2011



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