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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.

Danish brewer Carlsberg unveils new plans to promote growth in Asia

Danish brewer Carlsberg on Wednesday announced new strategic plans to strengthen its core business and capture growth opportunities.

The priorities of the strategy, known as SAIL'22, are based on key global trends, value drivers of the global beer industry and the Carlsberg Group's strengths, the company said in a statement.

"The SAIL'22 initiatives build directly on our strengths, including strong market positions, excellent portfolios of international and local brands, our strong heritage, compelling innovation capabilities as well as proud and engaged employees," said Carlsberg CEO Cees 't Hart in the statement.

Carlsberg said it will accelerate the growth in Asia by strengthening the brewery's position in the large beer markets of China, Vietnam and India.

Carlsberg suffered a loss of 2.582 billion Danish krones (385 million U.S. dollars) last year. It launched a cost-saving program which is expected to generate annual benefits of 1.5 to 2 billion krones by 2018.

According to the statement, about half of the benefits will be reinvested into the SAIL'22 initiatives. (one U.S. dollar = 6.7 Danish krones)

18 Мар. 2016



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