Press folder for the presentation of the new BARTH REPORT Hops 2017/2018 in Nuremberg on 26 July 2018 01 Statement by Heinrich Meier: The world hop and beer markets 02 Press Release: From hop trader to value added provider in the hop market 03 Press release: World hop market in 2017: Largest crop volume since 1996 Alpha volume at record high Alpha acid balance negative 04 Fact sheet: Key figures for the hop industry 05 Press release: World beer production: virtually no change in 2017 for the fifth year in succession 06 Press release: Eight German brewing groups among the TOP 40 worldwide All the material is available for downloading from our website at http://www.barthhaasgroup.com/de/mediathek/reports
Heinrich Meier Statement at trade press conference in Nuremberg on 26 July 2018 Hop acreage has increased by 27 % since 2013 Hop acreage continued to grow in 2017, rising worldwide by five per cent year on year to 58,700 hectares (ha); in the last four years it has increased by 27%. Acreage last exceeded this figure in 2001, with 58,900 ha. According to our projections, 2018 will see a further increase to 60,400 hectares. The biggest hop-growing countries in 2017 in terms of acreage share were the USA with 38 %, Germany with 33 % and the Czech Republic with 8 %. In the Pacific Northwest region of the USA, the respective shares of the aroma and bitter varieties were 77 % and 23 %. The most important varieties in acreage terms are Cascade, Centennial and Citra, all of them aroma varieties, with a combined share of 33 %. The most important bitter varieties are Columbus-Tomahawk-Zeus (CTZ), with 9 %. 2018 has brought an acreage increase of a further 800 ha. In Germany, the ratio of aroma to bitter varieties was 57 : 43. The bitter hop Herkules was the most important variety, with a share of 30 %, followed by the aroma varieties Perle and Hallertau Tradition, with 15 % and 14 % respectively. The acreage increase in 2018 totals 600 ha, of which 500 ha is accounted for by the bitter variety Herkules. In the past one to two years it has been noticeable that flavour varieties, i.e. the particularly aroma-rich hop varieties especially suited for craft beers, have been expanded beyond brewers requirements, probably not only in the USA and Germany.. World crop volume last equalled in 1996; alpha acid volume at all-time high While crop and alpha acid volumes in Europe were lower than in crop years 2017 and 2016, those produced on the American continent were significantly higher. 118,400 metric tons of hops were harvested worldwide in crop year 2017; this represents an increase of 6 %. The world crop volume in 2017 was therefore greater than it had been since 1996 when it amounted to roughly 124,000 mt. The USA, Germany and China contributed to this total with shares of 41 %, 35 % and 6 % respectively.
The harvested alpha acid volume of 11,250 metric tons set a new record. Here, too, the USA was the dominant country, with a world market share of 47 %, followed by Germany with 36 % and China with 4 %. This means that two countries (Germany and the USA) account for 76 % of crop volume and 83 % of alpha volume. The remaining 24 % and 17 % respectively are produced by the other 25 hop-growing countries. We expect there to be virtually no change in world beer output, but a further slight rise in the hopping rate, in the 2018 brewing year. This means that alpha demand will be higher than ever before. The alpha acid balance is negative for the sixth year in succession. World beer market stagnant since 2012 Beer output rose by only 1.2 million hectolitres in 2017. It has therefore stagnated at a level of just bellow two billion hectolitres since 2012. In the same period, however, alpha demand has risen by 25 %. The reason for this is the unbroken spread of the craft beer movement across the globe. Although it accounts for only 2.5 % of total world beer volume, it requires some 20 to 25 % of the entire world hop crop. The most important beer-producing nations remain China, the USA, Brazil, Mexico and, in fifth place, Germany. It is interesting to note that of these five countries only Brazil and Mexico posted growth, with just below seven and roughly five million hectolitres respectively. Output declined, on the other hand, in China, the USA and Germany by roughly ten, just below six and nearly two million hectolitres respectively. Beer is produced in 174 countries. The top three nations produce 41 % of the beer volume brewed worldwide; the top five countries have a combined share of 51 %; and the top 20 account for more than three quarters of world beer production. In 2017, 84 countries posted an increase in output and 36 countries a decline compared with the previous year. There was no change in 54 countries. Top 40 brewers leaders virtually unchanged Following its acquisition of SABMiller in 2016, AB InBev now heads the list of the top 40 brewers, with a clear lead over Heineken in second place. Several brewers changed places in the list. The bottom two places changed hands: Veltins replaced the Chinese brewer Yunnan Lancang River in 39th place and the Spanish brewer Estrella de Galicia replaced the Homburg-based Karlsberg brewery in 40th place. There are now eight German brewers among the world s top 40 brewers: The Radeberger group (20), Oettinger (24), TCB Beteiligungsgesellschaft mbh (26), the Bitburger brewing group (30), Krombacher (32), the Paulaner brewing group (33), Warsteiner (38) and a new entry Veltins (39). These eight brewers have a combined market share of 2.8 %.
Press release Joh. Barth & Sohn: From hop trader to value added provider in the hop market Nuremberg, 26 July 2018. In the past few years, we have made significant progress on our way from being purely a hop trading company to becoming a provider of value added in the hop market. This is how Stephan Barth, managing partner of Joh. Barth & Sohn, describes the repositioning of Barth and the BARTH-HAAS GROUP. Our goal is to be the hop experts for the best flavour in beer worldwide. (Barth) A first step in this process was the expansion of the product portfolio. In addition to our traditional products, such as pellets or extract, our portfolio now includes Advanced and Creative Products which offer breweries even more options for producing outstanding beers. (Barth) He adds that Brewing Solutions today employs highly qualified experts who advise breweries around the world. Also, BARTH Innovations develops new products, while the BARTH-HAAS Hops Academy offers a wide range of further training courses on hop-related subjects worldwide. This gives us all the more reason to celebrate the 225th company anniversary of Joh. Barth & Sohn in 2019. (Barth) Enquiries to: Erich Dederichs, press office, Joh. Barth & Sohn Tel.: 0228 223258, presse@johbarth.de Joh. Barth & Sohn is Germany s leading provider of hop-related services. Joh. Barth & Sohn is part of the BARTH-HAAS GROUP. The group is a German-American mediumsized enterprise with operations on all continents and is made up of family-owned companies. Depending on the season, the group has between 700 and 1,000 employees worldwide
Press release Freiligrathstrasse 7/9 90482 Nuremberg World hop market in 2017: Largest crop volume since 1996 - Alpha volume at record high Alpha acid balance negative USA now clearly the number 1 hop country Nuremberg, 26 July 2018. In 2017, roughly 118,000 metric tons of hops were harvested worldwide more than in any year since 1996. The alpha acid volume even reached an all-time high of more than 11,000 tons. These figures were taken from the new Barth Report, Hops 2017/2018, presented in Nuremberg by Joh. Barth & Sohn, Germany s leading provider of hop-related services. Nevertheless, the alpha acid balance for the 2018 brewing year is negative for the sixth year in succession. On the whole, the hop industry is in good health. This is the conclusion reached by Stephan Barth, managing partner of Joh. Barth & Sohn. Although global beer output has been stagnant since 2012, alpha demand has risen by a quarter in the same period. In fact, over the last ten years alpha demand has risen by nearly 50 per cent. The main reason for this increase continues to be the growth of the craft beer movement: Almost a quarter of the volume of hops harvested worldwide now goes into a segment whose share of the world beer market so far is slightly below three per cent. (Barth) However, as Barth points out, the great success of the craft beer movement with its often much more heavily hopped beers has also influenced the other market participants, because demand from them has also risen by nearly 20 per cent. The USA, currently with a share of 40 per cent, is clearly the world hop market leader, while Germany s share is 35 per cent. The supremacy of the USA can also be seen in terms of the varieties grown there: According to the variety list published by the International Hop Growers Convention, 272 hop varieties are grown worldwide, 87 of them in the USA and only 41 in Germany. The global hop market we knew in the past, says Barth, no longer exists. Instead, nearly all the hop varieties have their own individual market segments. In view of the high proportion of contracted hops in the USA and Germany, amounting to 95 %, Barth expects the supply situation to be very tight both in the bitter segment and for many aroma varieties. Enquiries to: Erich Dederichs, press office, Joh. Barth & Sohn Tel.: 0228 223258, presse@johbarth.de Joh. Barth & Sohn is Germany s leading provider of hop-related services. Joh. Barth & Sohn is part of the BARTH-HAAS GROUP. The group operates on every continent and is made up of family-owned companies. Depending on the season, the group has between 700 and 1,000 employees worldwide
Key figures for the hop industry 2016 2017 Change Beer output in million hl. World 1,951 1,952 0.1% Germany 94.96 93.01-2.0 % Hop acreage in ha World 56,137 58,739 4.6 % Germany 18,598 19,543 5.1 % Hop crop volume in mt World 112,125 118,401 5.6 % Germany 42,766 41,556-2.8 % Alpha acid production in mt World 10,533 11,248 6.8 % Germany 4,501 4,047-10.1 % Source: BARTH REPORT Hops 2017/2018 Enquiries to: Erich Dederichs Press office Joh. Barth & Sohn c/o dederichs kommunikation GmbH Tel.: +49 228 223258 presse@johbarth.de Last updated: July 2018
Press release Freiligrathstrasse 7/9 90482 Nuremberg World beer output virtually unchanged in 2017 for fifth year in succession Nuremberg, 26 July 2018. In 2017, world beer production increased by only 0.1 % year on year to stand at 1,952 million hectolitres. World beer output thus remained virtually unchanged for fifth year in succession. This can be read in the latest Barth Report, Hops 2017/2018, presented in Nuremberg by the BARTH-HAAS GROUP, world s leading provider of hop-related services. The five leading beer nations, China, the USA, Brazil, Mexico and Germany, now account for more than half of the beer produced worldwide, says Stephan Barth, managing partner of Joh. Barth & Sohn. Production increased in South America (+3.6 %), in Africa (+2.4 %), in Central America and in the Caribbean (+1.3 %). However, beer output declined slightly in Europe (-0.9 %) and Asia (-0.7 %). In Europe, output fell by 1.9m hl in Germany and 3.8m hl in Russia. The growth of 1.2 % for America came above all from countries in South America, among them principally Brazil, with an increase of 6.7m hl, and Columbia, Argentina, Peru and Chile, with a combined increase of 3m hl, while Venezuela posted a fall of 2.3m hl. In North America, the result was determined by a decline of 5.7m hl in the USA and an increase of 5.0m hl in Mexico. In Asia the increase in output in some countries (Vietnam +5.9m hl, Philippines +2.3m hl and Myanmar +1.2m hl) was insufficient to compensate for the decline in others (China -10.5m hl, Japan -3.5m hl and Thailand -1.7m hl), which led to a decline of 4.4m hl in total. The principal contributor to overall growth of 3.4m hl in Africa was Ethiopia with an increase of 1.6m hl. The precise figures can be found in the following table. Enquiries to: Erich Dederichs, press office, Joh. Barth & Sohn c/o dederichs kommunikation GmbH Tel.: +49 (0)228-223258 presse@johbarth.de Joh. Barth & Sohn is Germany s leading provider of hop-related services. Joh. Barth & Sohn is part of the BARTH-HAAS GROUP. The group operates on every continent and is made up of family-owned companies. Depending on the season, the group has between 700 and 1,000 employees worldwide
Beer Output development worldwide 2016/2017 Source: BARTH REPORT Hops 2017/2018
The world's top 40 brewing groups as of 31 December 2017 Since the takeover of SABMiller by ABI in 2016, there have been hardly any changes in the list of the world s top 40 brewing groups. This can be read in the new Barth Report, Hops 2017/2018, published in Nuremberg by Joh. Barth & Sohn, Germany s leading provider of hop-related services. Two new brewers have moved up into 39th and 40th place respectively: Veltins of Germany and Estrella de Galicia of Spain. As a result of the cooperation between ABI and EFES in Russia, the new unit is now a strong challenger as number 2 behind Baltica (Carlsberg) in the Russian beer market. ABI and EFES are also working together in Ukraine. Kirin has sold the Brazil-based brewery group formerly known as Schincariol to Heineken, as a result of which Heineken has greatly strengthened its competitive position vis-à-vis AmBev (ABI Group), the dominant player in the Brazilian market. The main focus of acquisition and consolidation activities is the craft beer segment, as this segment is currently the industry s only growth sector. For example, Sapporo bought the brewer of the legendary Anchor Steam Beer in San Francisco, ABI acquired the Australian brewer 4 Pines and Heineken took a stake in the Brixton Brewery in London. The data in the following table were taken from the brewers annual reports. In other cases, after different sources had provided differing figures, or where no figures were available, the production volume had to be estimated. Enquiries to: Erich Dederichs Press office Joh. Barth & Sohn Tel.: +49 (0)228-223258 presse@johbarth.de
The world's top 40 brewing groups as of 31 December 2017 Freiligrathstrasse 7/9 90482 Nuremberg