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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.

China. In the 1Q2016, AB InBev beer sales in China decreased by 1.1% to 16.63 million hectoliters

Anheuser-Busch InBev company has disclosed 1Q2016 performance results and has shared expectations for the further year.

According to the quarter report, industry volumes in China remain under pressure. However, AB InBev volumes continue to perform ahead of the industry, declining by 1.1% in the quarter, helped by the focus on the Core Plus, Premium and Super Premium segments.

According to the report, China beer industry volumes declined by approximately 4% in the quarter, due to economic headwinds. Company beer volumes faced a tough comparable, declining by 1.1% compared to a growth of 4.7% in 1Q15. AB InBev market share increased by approximately 45 bps, reaching an average of 19.0% in the quarter.

China EBITDA grew by 3.8% and EBITDA margin improved by 76 bps to 27.0% in 1Q16.

 

AB InBev China_figures

 

In 2016 financial year, company’s experts expect industry volumes to remain under pressure. Meanwhile AB InBev expects its own volumes to perform better than the industry, driven by the premium and super premium brands.

AB InBev management continues to believe the Core Plus, Premium and Super Premium segments have the greatest long term growth potential in the industry. Company’s brands in these segments represent more than 50% of their total China volumes, and are well positioned, with strong brand health metrics.

China_Segments

Revenue per hl grew by 2.1% in the quarter, with the benefit of favorable brand mix being partly offset by unfavorable regional mix driven by poor weather and industry weakness, particularly in the south and east of the country.

10 мая. 2016

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