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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 spends $80m on new Uganda brewery

SABMiller, the huge brewing company which owns the Grolsch and Miller brands, is to invest $80m in a new brewery for its Ugandan subsidiary, Nile Breweries.

The new facility will be constructed in Mbarara, western Uganda.

The total Ugandan beer market grew 28% over the 12 months to the end of December 2011, driven, SAB says, by strong economic growth and population expansion.

Average per capita beer consumption is at around eight litres per year, compared to an average of around 60 litres in South Africa.

The Mbarara site will employ around 140 people directly and will brew the bulk of Nile Breweries portfolio of beers, including Nile Special, Club Pilsener, Eagle Extra and Eagle Lager.

The development site is on the banks of the River Rwizi which will provide the water source for the brewery.

Mark Bowman, the Managing Director pointed out the development would double the company’s production capacity in Uganda and provide a guaranteed revenue stream for local farmers.

SABMiller shares have gained 20% in the last 12 months.

14 Фев. 2012



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