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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.

SABMiller, SWD to Build a $ 60 Mln Brewery

SABMiller, the world’s second largest brewer, and SouthWest Development (SWD), an Ethiopian investment group, are going to build a 60-million-dollar brewery in Ethiopia. The brewery will be built near Holeta, 40km from Addis Ababa.

The brewery is expected to have an annual production capacity of 500,000 hectolitres of beer. Construction of the factory is scheduled to start when the rainy season is over and to be completed in 18 months time.

Beer consumption is growing in Ethiopia at the rate of 20 percent. The current annual per capita consumption of beer is four litres.

Early this month, Heineken concluded the purchase of Bedele and Harar breweries for 163 million dollars. SABMiller and SWD have also shown interest in the market. Their initial offers to buy state-owned breweries have been unsuccessful.

It was reported last week that Meta Abo, another state-owned brewery, was up for auction. The government of Ethiopia has not yet revealed how much it is demanding for Meta Abo but the bids will close on September 3.

SABMiller and Southwest Development jointly own Ambo Mineral Water S.C. which they bought from the Ethiopian Privatization and Public Enterprises Supervisory Agency (PPESA). They have upgraded the factory with a 21 million dollar investment.

The Reporter

23 Авг. 2011



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