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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.

Philippines. San Miguel Brewery revenue rose by 19%

Leading beer-maker San Miguel Brewery (SMB) booked a 20 percent year-on-year growth in first semester net profit to P8.25 billion, tracking robust consumer spending during the presidential election season.

In a press statement on Tuesday, the beer unit of conglomerate San Miguel Corp. reported that consolidated revenues rose by 19 percent to P47.4 billion during the first six months of the year.

SMB said sales volumes were boosted by election-related spending.

Domestic beer volumes grew by 17 percent to 101.3 million cases, translating to revenues of P41.6 billion.

The Philippine economy expanded by 6.9 percent in the first quarter. Household consumption rose by 7 percent due to manageable consumer prices and improved labor market. The unemployment rates of 5.8 percent as of January 2016 was the lowest in 10 years.

Apart from robust macroeconomic fundamentals, SMB said the company implemented new brand campaigns, consumer and outlet promotions and trade programs to boost consumption of SMB brands in the Philippines.

10 Авг. 2016



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