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.

Vietnam. Beverage companies seek tax delay

Beverage companies seek to delay until the beginning of 2017 the application of amended regulations on calculating their special consumption tax, claiming they need more time to adjust their production plans.

According to Decree 108/2015/ND-CP and Circular 195/2015/TT-BTC, which came into force just over two months ago, the special consumption tax on producers would be calculated based on the price that its member distributing company sold to sales agents and the taxable price must be lower than 7 per cent compared to the agent's monthly average end selling price.

Nguyen Van Viet, chairman of Viet Nam Beer Alcohol Beverage Association, said that the price gap being capped at 7 per cent would cause administrative procedures to become more complicated for companies.

"Beverage companies need time to adjust their production plans," said Viet, adding that implementation of the two documents should be delayed until January 1, 2017.

Nguyen Hong Linh, general director of Ha Noi Beer Alcohol and Beverage Joint Stock Corp. (Habeco), said that having the price gap between sales agent and distributing company capped at 7 per cent, instead of current 10 per cent, would make it hard for distributing companies to cover their operation costs.

The regulation would also cause difficulties in compliance, as the price of beverage products often change seasonally.

Participants at a conference yesterday urged the Government to revise the regulations on calculating the special consumption tax for companies that operated under a holding company model in order to create conditions for them to operate efficiently.

Several companies said that the taxable price should be the end selling price of the producer, not the end selling price of its member distributing company.

Le Hong Xanh, deputy director of Saigon Beer-Alcohol-Beverage Joint Stock Corp. (Sabeco), said that the new regulations would increase tax pressure on companies and might cause a decline in revenues as well as contributions to the budget.

Dau Anh Tuan, from the Viet Nam Chamber of Commerce and Industry, said that the issuance of legal documents must have an appropriate roadmap, adding that sudden amendments might force companies to face the risk of losses or even leave the market.

The two legal documents were issued months after the audit watchdog proposed that Sabeco pay an additional VND408 billion (US$18.2 million) in special consumption tax for 2013.

Sabeco distributed its beer products through several intermediaries, from a subsidiary, Sabeco Trading Joint Stock Company, in which it holds a stake of 90 per cent, to regional trading companies, before selling to dealers and consumers.

Sabeco's excise tax filing was based on the selling price of Sabeco Trading Joint Stock Company, while the state audit said that the excise tax should be calculated based on the selling price of regional trading companies, resulting in a controversy.

The association earlier this year said that the beverage industry contributed VND30 trillion to the State budget last year.

17 Мар. 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