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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. Tasmac beer sales get summer, election kick

This might sound like something straight out of Ripley’s Believe it or Not if you were not in Tamil Nadu.

For tipplers here, though, the heat and elections combined together are a prescription for beer. That is why after two years, beer sales at The Tamil Nadu State Marketing Corporation Limited have gone up by 20 per cent.

“Outlets which sold 50 bottles in February are now selling more than 100 bottles per day,” said one of the union members who wished anonymity. Exact figures could not be ascertained from Tasmac officials owing to the Model Code of Conduct being in force, but Tasmac union members confirmed that the graph is trending upward in the last 40 days, roughly coinciding with the onset of summer, and electioneering.

Of course, there are other reasons too, industry observers say. A SWOT (Strength, Weakness, Opportunities and Threat) analysis that Tasmac undertook a few months ago helped it strengthen its infrastructure and it is now reaping the fruits. Beer sales dropped last in 2014 (10 per cent) and 2015 (20 per cent).

The reason: liquor prices were hiked. In March 2015, 20.85 lakh cases were sold compared to 25.39 lakh cases previous year. April witnessed sale of 21.71 lakh cases in 2015 against 27.60 lakh in 2014.

There were other concerns too — one, beer needs to be served chill and Tasmac outlets had poor infrastructure. Secondly, not all brands are available in Tamil Nadu.

Tasmac, the cash cow of the State, has more than 6,000 outlets across the State where more than 70 lakh people consume liquor. Of this, more than 2,300 outlets sell beer. And yes, parties and their leaders continue to talk of prohibition.

27 Апр. 2016

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