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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. Liquor stocks slide on likely ban in Tamil Nadu

Shares of two liquor makers, United SpiritsBSE -1.56 % and United Breweries , fell on Wednesday as investors became jittery ahead of Tamil Nadu election results. The expectation that DMK will come to power in the State made investors nervous as the party has promised a complete ban on alcohol in its election manifesto.

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United Spirits (USL), the world's second-largest spirits company by volume, fell over 3% to end at Rs 2,541.05 on Wednesday. United Breweries dropped almost 2% to close at Rs 733.10. Other liquor makers, such as Pioneer Distilleries (a subsidiary of USL), Associated Alcohol and Breweries and Empee Distilleries, all rose between 1% and 5% on the same day.

Analysts feel that this could be because these are relatively smaller companies. However, they warn that prohibition will not spare any company.

"Prohibition looks like it is on the cards if the DMK wins," said Abneesh Roy, associate director at Edelweiss Capital. "But the timeline for the prohibition and the kind of liquor that is going to be banned is awaited. Apart from the Tamil Nadu election results, another factor that is causing concern is the talk of Maharashtra cutting water supply to liquor companies," Roy said.

His top pick is United Spirits. In April, the Aurangabad bench of Bombay High Court ordered the Maharash ..

Some feel that it is too early to take a call on these stocks. "We'll have to wait for the results," said Gautam Duggad, head of research - institutional equities, Motilal Oswal Financial Services. "It is tough to comment on whether the proposed restrictions will have an impact unless there is clarity on how prohibition is going to be achieved — whether through a staggered or a blanket ban." Even with these setbacks, analysts feel United Spirits is an attractive bet. "We have a positive outlook on United Spirits as it is the leader and the industry is placed favourably on a long term basis," said Duggad.

19 мая. 2016

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