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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.

Belarus. Efes starts beer manufacturing at Krinitsa’s capacities and considers possibility of buying company’s share

Turkish beer manufacturer Anadolu Efes currently ranking 6 among European brewing companies and 11 in the world is willing to considerе the possibility of buying Belarusian Krinitsa’s share.

“I do not think the state currently intends to sell a share of Krinitsa company. But if such proposals arise, we are willing to consider them. It would be interesting for us to become a local representative in Belarus”, - said Serkan Tyumer, business development manager of the Turkish company at a press conference in Minsk.

At the end of 2015, Krinitsa signed a contract with plant Anadolu Efes. License agreement for brand Zolotaya bochka production is intended for 5 years. Krinitsa will be fully responsible for market promotion on Belarus market. Sorts GoldMineBeer and GreenBeer will be only manufactured at Krinitsa’s capacities and their promotion will be Anadolu EFES’s job. Under Krinitsa’s estimation, in the first year, the production volume under the contract with Anadolu EFES can amount to about 50 thousand dal.

As said by S. Tyumer the company’s entering the Belarusian market has no connections to the company’s shut down of two production sites in Russia. “We have seen the potential of the Belarusian market, which is strategically important for us”.

According to the report of state enterprise Belgospischeprom, production of beer Krinitsa in 2015 amounted to 13.24 mln dal, which is 3.9% lower than in 2014. By the end of 2015, Krinitsa raised revenues by 13% to 750 bln ruble. Yet due to the national currency devaluation the revenues in dollars fell by a quarter – to $48 mln.

18 Июл. 2016

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