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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.

Carlsberg to keep Sri Lanka’s Lion supplied after floods

Sri Lanka's Ceylon Beverage Holdings Plc said its partner Carlsberg will brew and supply is brand with their factory expected to be out of commission for three months, after floods.

The firm, which sells Lion and Carlsberg brands in Sri Lanka said it carried only about 15 days of finished product.

Though beer demand has fallen after tax increases last year, driving more people to toddy and hard alcohol.

Demand has also fallen due to heavy rains.

Carlsberg Asia will brew the beer at four locations and ship the products to Sri Lanka.

"..[S]ince the brewing process itself takes 15 days, raw materials need to be sourced & brands shipped to Sri Lanka, it will take some time before products start flowing back into the market on a regular basis," Chief Executive Suresh Shah told shareholders.

Though floods were an annual occurrence, this year the water levels had been higher and it had damaged the factory and its electronic circuitry.

These are custom made and took time to produce and arrive in Sri Lanka. The company said damage is still being assessed but it had flood cover and also business interruption insurance which would protect cashflows.

Lion said it had carried out relief work in the area during the floods. Some of its employees, whose houses were also damaged had also continued to work and support the efforts, Shah said.

28 Июн. 2016



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