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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.

Fiji. Vanuatu beer company forced to place contracts abroad

Pressure and fiscal instability in Vanuatu could not allow a Vanuatu beer company to invest on its can production line in Vanuatu because the can production line alone is costly.

The cost of production alone by Vanuatu Brewing Ltd (VBL) appropriately VT125million ($F2.47m).

However, Tusker beer can is now available in Vanuatu, but is manufactured in New Caledonia.

Economically speaking, the Vanuatu Chamber of Commerce and Industry (VCCI) says it is a lot cheaper to produce brewery products abroad than in Vanuatu.

"The VBL has been producing its Tusker can abroad because of a few issues in which two are mentioned above and are yet to be addressed by the Vanuatu Government," VCCI said in its newsletter.

"If the VBL is to relocate its entire operations abroad by mid-year 2016, the consequences in terms of employment and other factors would be huge.

Jobs will be lost and the Vanuatu Government would lose a lot of revenue through taxes."

"The trade imbalance would therefore grow larger. It is therefore important that to secure continuous employment for the local workers, local manufacturing companies such as the VBL needs to be supported, protected and promoted." Apart from national icons such as the Tanna Coffee and the others, Tusker is one of the few products that carried the Vanuatu brand and has the potential to be widely distributed within and outside the Pacific region.

Some countries such as Bali where tourism is their main revenue, it says are so proud of their national icons.

"These countries have understood the positive interactions between their tourism industries and their national icons."

29 Мар. 2016



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