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4-2017

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.

India. Carlsberg brewery in Aurangabad faces dry days ahead

Water supply to Carlsberg brewery in Aurangabad has been cut, thanks to Maharashtra government's directive to stop supply of water to breweries and distilleries in Marathwada region, following the extraordinary drought situation prevailing in the area.

Carlsberg told ET: "The water supply to the Carlsberg brewery in the Waluj Industrial Area of Aurangabad has been reduced. We are reviewing the situation in Aurangabad and are cooperating with the authorities to support them on the steps taken to address the issue."

But the Vijay Mallya-led United Breweries, country's largest brewer, said it will survive the summer without much damage as it has already upgraded its system to meet such eventualities.

A note issued by the company to ET said: "We have proactively put in place several measures to reduce water consumption. We have installed water-efficient bottle washing equipment, state-of-the-art recycling systems to treat and re-use water in designated areas of the plants, and have significantly reduced water losses in the breweries. These measures have dramatically brought down water requirements and we follow global best practices and standards in water conservation". "We do not see a major issue in operating in summer, because of the above", the note added.

With water supply lowest in the past 40 years, the state government is left with no option but to curtail water supply to nonessential consumption. Maharashtra has 90 distilleries depending on dams for its water supply.

However, many others are cautious in their approach. Most alcohol beverage producers want the government to tread cautiously on the policy of stopping the water supply to breweries and beverages as the government would not be able to stomach the full ramification of such a measure.

24 Янв. 2013

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