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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. Tsingtao building brewery in Jimo for $33 mln, while Carlsberg closes a plant in Bozhou.

On May 24, 2016, at a board meeting an elective resolution was taken to close Chongqing Brewery Bozhou Co., Ltd in Anhui, with a production capacity of 40 mln liters of beer per year.

Closing the brewery in Anhui province fully complies with the optimization policy which was agreed upon at Chongqing Brewery Co., Ltd board meeting on 27 November, 2015.

The official statement says that the closure results from the gradual sales dwindling of Chongqing Brewery in Bozhou. The demand for the production in the province has fallen down, and the output of low-margin products does not yield sufficient profit, while the marking is increasingly refocusing on high-end products.

As of 31 December, 2015, sales revenue amounted to 52.71 mln yuan and sales totaled 27.3 mln liters.

While Carlsberg closes its plants, Tsingtao is investing $33 mln into construction of a new brewery in East Industrial Park Road 179, Jimo district.

The brewery construction is to start in June 2016 and the production launch is planned for February 2017.

The prospected capacity of Ruifeng century (Qingdao) Co., Ltd.is 30 mln liters of beer per year.

The construction site will occupy 27,000 square meters. The complex itself will encompass the malt stand, brewhouse, fermentation workshop, packaging workshop, distribution systems, heating systems, compressed air systems, cooling systems, and R&D center as well as other ancillary facilities.

25 мая. 2016

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