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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.

Tsingtao Profit Falls as China Slowdown Hurts Beer-Drinking

Tsingtao Brewery Co., China’s second-largest beermaker by market value, reported earnings fell 11 percent in the six months ended June as poor weather and the country’s economic slowdown affected sales.


Net income was 1.07 billion yuan ($160 million) in the first half, compared with 1.2 billion yuan a year earlier, according to a statement sent to the Shanghai stock exchange Tuesday. Revenue fell 8.2 percent to 14.7 billion.

Brewers in China are introducing more premium products as they seek to differentiate themselves amid stiff competition for drinkers, and as the country’s slowdown lead to weakening consumption. Sales were further dented this summer, traditionally the peak period for beer-drinking, as China was hit by its worst floods since 1998 and cooler-than-usual weather.

China’s beer market remained under pressure in the first half of 2016 as beer sales were negatively impacted by weak food and beverage consumption and adverse weather, according to the beer maker in its statement on Tuesday. International beer makers are also expanding in China, making competition “more fierce,” the company said.

Tsingtao Brewery shares have slumped 25 percent this year while the benchmark Hang Seng Index rose 5 percent. Its rival, China Resources Beer, has seen its stock rise about 15 percent during the same period.

31 Авг. 2016



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