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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.

MillerCoors Discontinues MGD 64 Lemonade Beer Launched In May

MillerCoors LLC, a joint venture between Molson Coors Brewing Group Inc. (TAP) and SABMiller PLC (SBMRY, SAB.JO), is discontinuing its MGD 64 Lemonade after less than three months on the market.

MillerCoors, the second-largest U.S. beer maker by revenue, introduced the low-calorie lemonade-flavored beer in May as a limited-edition summertime product, expanding from its three-year-old Miller Genuine Draft 64 beer. The number refers to the beer's calorie content.

"Winning in beer requires testing the bounds of the market with innovation," the company said in a statement. "With that commitment, however, comes a recognition that not every innovation will succeed."

MillerCoors is telling distributors that it will buy back all MGD 64 Lemonade currently in warehouses, where legal. It will also cover destruction costs up to $2.50 per case.

The company's prior foray into flavored beers--the lime-flavored Miller Chill introduced in 2007--started out strong but sales slid after larger rival Anheuser-Busch InBev NV (ABI.BT, BUD) unveiled Bud Light Lime the next year.

The beer market has been pressured in recent years as stubbornly high unemployment among its core consumers keeps discretionary spending in check. In May, MillerCoors reported volume fell 1.4% from the prior year. Coors Light and Miller Lite sales improved, but MGD 64 saw double-digit declines.

15 Авг. 2011



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