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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.

Asahi Group Holdings Jan-Sep Net Profit Up On Cost Reductions

Asahi Group Holdings Ltd. (2502.TO) said Monday that its net profit for the nine-month period ended September grew 37% on year, due to efforts to scale down sales promotion and other costs.

The nation's biggest brewer in terms of market share said it posted a net profit of Y35.94 billion during the just-ended nine-month period, compared with the year-earlier profit of Y26.34 billion.

Sales declined 2.7% to Y1.066 trillion from Y1.096 trillion a year earlier, while operating profit rose 22% on year to Y76.78 billion.

Many of big Japanese food and beverage companies are under pressure with domestic demand saturated, the population shrinking, and the economy weak, prompting them to extend their global reach out of concerns the customer base in Japan is deteriorating. A shift in consumer appetite to other drinks is also hurting beer sales.

For the full business year ending Dec. 31, the company kept intact its group net profit outlook at Y57 billion on operating profit of Y107 billion. Sales are estimated at Y1.459 trillion, also unchanged from the previous outlook in August.

The earnings are based on Japanese accounting standards.

31 Окт. 2011



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