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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.

Nigerian Breweries Buys Sona and Life to Expand Capacity

Nigerian Breweries Plc (NB), the country’s biggest beer-maker by market value, said it acquired Sona Systems Associates Business Management Ltd. and Life Breweries Co.

With the takeover, the Heineken NV (HEIA) unit takes control of Sona’s two brewing plants in the southwestern town of Ota and the northern city of Kaduna, as well as a third formerly run by Life Breweries in the southeastern city of Onitsha, the Lagos- based company said in a statement published today by the Nigerian Stock Exchange. Nigerian Breweries didn’t say how much it paid.

The acquisitions give Nigerian Breweries “immediate access to additional capacity and also brand extension,” Tunde Abidoye, an analyst with FBN Capital Ltd. said today by phone from Lagos. They will add about 3.7 million hectoliters to the company’s production and broaden its product range, he said.

Nigeria, with more than 150 million people, is the continent’s most populous country and is attracting investment from global beermakers seeking to expand market share. SABMiller Plc (SAB), the world’s second-largest brewer by volume, said on Feb. 25 that it plans a $100 million plant in Onitsha within two years. Guinness Nigeria Plc, a beer-making unit of distiller Diageo Plc (DGE), said on March 11 that it will spend $336 million to expand brewing capacity in the country.

Nigerian Breweries rose 5 percent, the maximum daily limit, to 79.78 naira by the 2:30 p.m. close in Lagos. The stock has risen 2.9 percent this year, compared with a 18 percent decline in the Nigerian Stock Exchange All-Share Index over the same period.

3 Окт. 2011



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