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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.

Mexico’s Modelo profit up 33 pct on weak peso

* Q3 profit 3.310 bln pesos vs 2.496 bln pesos last year
* Revenue up 1.4 percent to 23.551 bln pesos
* Costs seen rising in Q4

Oct 21 (Reuters) - Mexican brewer Grupo Modelo benefited from the weak peso in the third quarter, posting an almost 33 percent jump in profit even as revenue rose only slightly.

Modelo, which exports popular brands such as Corona, got a boost as the peso saw its steepest slump in September since the 2008 financial crisis. As the peso fell, the value of the company's sales in the United States, its biggest export market, rose.

The brewer reported on Friday that third-quarter profit climbed to 3.310 billion pesos ($238 million) from 2.496 billion pesos a year earlier.

Modelo -- half-owned by the world's biggest brewer, Anheuser-Busch InBev -- said revenue rose 1.4 percent to 23.551 billion pesos.

The brewer could take a hit in the fourth quarter from higher grain costs, Chief Financial Office Emilio Fullaondo warned analysts on a conference call.

A cold snap in September and heavy rains in Mexico's southwest damaged as much as 70 percent of the country's second barley crop of the year, and this mean Modelo will have to import barley at higher prices, Fullaondo said.

EXPORT DROP

Export sales dropped 4.1 percent in the third quarter, hurt by lower sales in the United States. Sales in Latin America and Europe increased.

Modelo is introducing new brands, such as Victoria and Pacifico, and expanding its draft offering in the United States.

"We are committed to developing the new brands that we're launching into the U.S., but that takes time," said Fullaondo. "It's still a very complicated environment in the U.S."

Exports accounted for 32.7 percent of total sales in the quarter, compared with 34.5 percent a year earlier, Modelo said.

Domestic sales were up 9.6 percent.

Modelo shares were up 2.2 percent at 80.64 pesos in local trading on Thursday.

21 Окт. 2011

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