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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.

India. Aim to surpass industry volume growth of 5-6%: United Breweries

Even with growing competition from Carlsberg, United Breweries has managed to retain its market share at nearly 50 percent and is well prepared to deal with future competition as well, says MD Shekhar Ramamurthy.

United Breweries reported a 20.4 percent jump in profit to Rs 147.06 crore on back of higher realization and sales. Net sales rose 8.6 percent to Rs 1,485.6 crore for the company in the first quarter.

Speaking to CNBC-TV18, Shekhar Ramamurthy, MD of the company said while April was a good month, May-July have been muted on back of early arrival of monsoon.

He expects volume growth for the industry to be at 5-6 percent for FY17, which the company will surpass.

Even with growing competition from Carlsberg, the company has managed to retain its market share at near 50 percent level and is prepared to deal with competition in future as well, he says.

United Breweries is working on new brands, which will hit market in next 1-11.5 years, says Ramamurthy.

16 Авг. 2016



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