Pivnoe Delo


Top articles



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.

Singapore. Splurging billions on Peroni and Grolsch may not be the smartest move for F&N

Expanding in the ASEAN might make better sense.

Analysts are wary over Fraser and Neave’s involvement in the EUR3 billion sale of premium European beer brands Peroni and Grolsch.

A report by DBS said that FNN’s interest in Peroni and Grolsch is surprising, as analysts had the impression that the group will simply focus on expanding its presence in the ASEAN.

“We are a little mixed on this development at this stage. On the surprise factor, we had the impression that the focus of FNN/ThaiBev would be more on ASEAN region. That said, we believe the intention is to leverage on the Peroni and Grolsch European brands to launch into this region if it was successful,” DBS said.

The report added that FNN might be looking to claw back its beer profits, which vanished after the divestment of its stake in Myanmar Brewery Limited.

“We believe the intention was to leverage on FNN for international expansion, while ThaiBev’s focus remains within Thailand. Although the ThaiBev/ FNN group has a presence in the region, an established beer distribution network is currently only in Thailand (Chang), coupled with export presence in Singapore and Myanmar. It remains to be seen if FNN will be able to significantly ramp up the introduction of the brands within short span of time in the region,” said DBS.

Despite its misgivings, DBS believes that Peroni and Grolsch’s price tag is not excessively high. If the bid pushes through, FNN is likely to fund the acquisition using a mix of internal cash, debt and equity.

“Based on our initial estimates and assuming a price tag of EUR2.5bn (S$3.75bn), we believe FNN is likely to rely on a mix of funding, about 53% debt (S$2bn), 25% equity (S$950m) and 21% cash (S$800m). This is likely to bring FNN’s net gearing to 0.6x (post assumed equity issuance) with a Debt/ EBITDA of under 4x,” said DBS.

4 Фев. 2016



Main topics

Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Search in posts
Search in pages
Search in groups
Search in users
Search in forums
Filter by Custom Post Type
Filter by Categories