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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.

SABMiller India Ltd again in the red, but the losses are decreasing

The fiscal year 2015-16 was a positive year for the beer industry with a return to volume growth despite regulatory issues. SABMiller India was able to grow sales revenue by circa 5% in the face of an increasingly competitive market place re-affirming again the strength of its brands.

According to Report income increased from approximately 292.78 to 316.43 million dollars (+7.6%) (performance in INR see on pic.). The company's expenses also increased, but at a slower pace (+3.7%). Such dynamics had favorable impact on the financial result. Despite the fact that the company remains in the red, the loss decreased from approximately 19.2 to 7.12 million dollars (or 62.8%).



During the last fiscal year SABMiller India Ltd was making improvements of design of some brands and launched new sorts.

For example, SABMiller launched Haywards 5000 BOLD, a premium strong beer extension of their leading mainstream brand Haywards 5000 in six states.

In December 2015, Knock Out was renovated with superior packaging and new communication in their core states of Karnataka, Maharashtra, Telangana and Andhra Pradesh.

In March 2016, Foster’s was re-launched in states of Karnataka, Maharashtra and Haryana. The new pack comes in new bottle design with a thermo-chromatic label.

Miller franchise in the worth more segment continues to grow at more than 90% for the past two years in a row and is the fastest growing premium Beer brand in the Indian beer industry.

Continuing the good progress, company has made on cost containment in previous years and also managed to restrict inflation on the cost of goods sold to well below inflation.

During the year 2015-16 SABMiller has commissioned “Zero Liquid Discharge” projects in four of breweries thereby reducing water consumption by 10% for every litre of water used for every litre of beer manufactured basis over previous year.

5 Окт. 2016



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