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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.

Kirin buys control of Brazil’s Schincariol for $2.6 bln

* Kirin pays 198.8 bln yen to get control of Schincariol
* Kirin buys Aleadri-Schinni, with 50.45 pct Schincariol stake
* Brazil No.2 beer maker could boost Kirin's overseas strategy (Adds details, background)

TOKYO, Aug 2 (Reuters) - Japan's Kirin Holdings Co will spend 198.8 billion yen ($2.6 billion) to take a controlling stake in major Brazilian beer and soft drinks maker Schincariol to expand its market share in the fast-growing South American economy.

Kirin said on Tuesday it had bought all outstanding shares of Aleadri-Schinni Participacoes e Representacoes S.A., which holds a 50.45 percent stake in Schincariol, Brazil's No.2 beer and No.3 soft drinks maker.

The purchase of the maker of Nova Schin and Devassa beer brands was funded via cash on hand and loans and will give Kirin access to Schincariol's nationwide distribution network and 13 production facilities.

The move is part of Kirin's strategy, pursued over the past several years, to diversify its operations and grow outside its saturated home market, where it vies for the top spot in beer sales with Asahi Breweries .

Japan's beer market shrank more than 15 percent in terms of shipment volumes during the last decade as the population aged, consumer spending sagged and drinkers opted for cheaper alcoholic beverages, leading firms to look abroad for profit growth drivers.

In January, Kirin announced a deal to establish a joint venture with China's top beer maker China Resources Enterprise to produce and distribute non-alcoholic beverages in China.

Kirin's shares were down 0.4 percent at 1,146 yen in early trade, compared with a 1.3 percent drop in the benchmark Nikkei share average . ($1 = 76.615 Japanese Yen)

2 Авг. 2011



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