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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.

Kirin may enter beer market in Myanmar

Kirin Holdings Co. is considering entering the beer market in Myanmar, initially aiming to sell its main Ichiban Shibori brand beer there, it has been learned.

With Myanmar's economy growing with its democratization, beer consumption is also expected to expand. Kirin sees Myanmar as a priority market, according to sources.

Myanmar has a population of about 62 million, about the same as that of Thailand, and its gross domestic product per capita is predicted to grow at an annual rate of 6 percent to 7 percent in the coming years from about 800 dollars (about 70,000 yen) in 2011. In Vietnam, which began economic reform before Myanmar, beer consumption is growing by 13 percent a year on average.

Kirin Holdings acquired a 48 percent stake in San Miguel Brewery in the Philippines in 2009, which helped the firm successfully enter markets in Thailand and Vietnam.

Kirin Holdings is reportedly considering selling Ichiban Shibori beer produced in Japan in Myanmar with the help of San Miguel.

Kirin Holdings also aims to buy the beverage arm of Fraser and Neave Ltd., a major beverage and real estate firm in Singapore, for about 70 billion yen in 2013.

Because a Fraser and Neave subsidiary, Myanmar Brewery, is already producing and selling beer in Myanmar, Kirin Holdings hopes to start producing and selling beer in that nation if the buyout succeeds.

The firm is believed to be eyeing production and sales of inexpensive local beers in Myanmar in the future.

According to Kirin Holdings data on global beer consumption in 2011, China topped the list for the ninth consecutive year, at 48.99 million kiloliters, up 10.7 percent from 2010, followed by the United States, at 23.86 million kiloliters, down 1.2 percent.

Emerging Asian nations are expected to lead the world in beer consumption in the future.

14 Янв. 2013



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