Barth-Haas Presskit 2010

8/8/2019 Barth-Haas Presskit 2010

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Joh. Barth & Sohn GmbH & Co. KG

Freiligrathstr. 7/9 90482 Nrnberg

Tel. +49-911-5489-0 Fax +49-911-5489-330E-Mail: [email protected] www.johbarth.com

Kommanditgesellschaft Sitz: 90482 Nrnberg Registergericht Nrnberg HRA 377Pers. haftende Gesellschafterin: Barth Verwaltungs-GmbH Sitz: 90482 Nrnberg Registergericht Nrnberg HRB 14453

Geschftsfhrer: Stephan J. Barth / Alexander W. Barth / Regine Barth

Press release

Joh. Barth & Sohn sees difficult years ahead for the hop market

Munich, 21.07.2010. Since 2006 the world hop industry has been riding a roller-

coaster. As a result, demand for hops will continue to fall. This was stated byStephan Barth, managing partner of Joh. Barth & Sohn, Germanys biggest providerof hop-related services. He advised hop growers to clear hop land even in theHallertau region. There is no point in producing hops for a market that will not buythem.

He added that the recession in the hop market until 2005 was followed by anunprecendented boom on the spot markets in crop years 2006 to 2008. In response,the international brewing industry placed long-term forward contracts on theassumption that beer output would continue to rise. The reality, however, turned outto be different: the hop supply deficit in crop years 2006 2008 has now become asupply surplus.

The world economic crisis also left its mark on the beer market. In 2009, for the firsttime in years beer production not only failed to rise, but fell slightly instead. However,after the 2007 harvest in particular, due to the high volume of forward contracts withthe brewing industry, the hop growers had increased hop acreage. Now it emergesthat the brewing industry clearly has forward contracts that are surplus torequirements.

In summing up, Barth stressed the following points: Too many hops are being

grown! Without further clearing of plantations, the hop market will not be able torecover in the medium and long term".

Enquiries to:Erich DederichsPress office, Joh. Barth & SohnTel.: 0228 [email protected]


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Kommanditgesellschaft Sitz: 90482 Nrnberg Registergericht Nrnberg HRA 377Pers. haftende Gesellschafterin: Barth Verwaltungs-GmbH Sitz: 90482 Nrnberg Registergericht Nrnberg HRB

14453Geschftsfhrer: Stephan J. Barth / Alexander W. Barth / Regine Barth

Key figures for the hop industry

2008 2009

Beer production

Worldwide 1.819 billion hl 1.810 billion hlGermany 102,9 million hl 100,0 million hl

Hop Production AreaWorldwide 57.297 hectares 56.645 hectaresGermany 18.695 hectares 18.472 hectares

Hop HarvestWorldwide 111,175 mt 113,690 mtGermany 39,677 mt 31,344 mt

Alpha-ProductionWorldwide 10,424 mt 10,901 mtGermany 3,984 mt 3,244 mt

Source: Barth-Bericht Hopfen 2009/10

Enquiries:Erich Dederichsdederichs kommunikation GmbHPrinz-Albert-Str. 81

53113 BonnTel.: +49 228 223258Fax: +49 228 223257Mob.: +49 172 290 4967

Date: Juli 2010


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Press release

World beer output in 2009 virtually stable at 1.8 billion hectolitres- Germany still number 5 in world rankings -

Munich, 21 July 2010.For the first time since 1992, world beer output did

not continue to rise, but fell by nearly 10 million hectolitres. In total, more than1.8 billion hectolitres of beer was brewed worldwide. This is equivalent toabout 18 times the volume produced in Germany. This was stated by RegineBarth, managing partner of Joh. Barth & Sohn, Germanys biggest provider ofhop-related services, in her address to the press in Munich.She added that nearly all the western industrialized countries registered a fallin output. As had already been the case in previous years, the true winnerswere in Asia, where output rose by more than three per cent. China furtherraised its output and alone produced more than 423 million hectolitres, thusremaining uncontested at number one in the beer market. As in the previousyear, Germany, with beer output of around 100 million hectolitres, is numberfive in the international rankings behind China, the USA, Russia and Brazil.(Regine Barth)

Almost 93 per cent of total beer output was accounted for by the worlds 40biggest beer-producing countries. The five largest brewing groups, AB InBev,SAB Miller, Heineken, Carlsberg and China Resource Brewery Ltd.,continued to represent nearly 50 per cent of the world beer market. It ishardly surprising that the list of the worlds largest 40 brewing groupsincludes only three German brewers. They are Radeberger, with a worldmarket share of 0.7 per cent, at number 22, Oettinger, with 0.5 per cent, at

number 33 and the Bitburger brewing group, with 0.4 per cent, at number37.

Enquiries to:Erich DederichsPressestelle Joh. Barth & SohnTelephone: 0228 [email protected]


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Remark:This graph is ready for download onwww.barthhaasgroup.com/New&Reports/Press releases


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Press release

Barth-Haas Group and Joh. Barth & Sohn maintain their leadingposition in the world hop market

Munich, 21 July 2010. Joh. Barth & Sohn and the Barth-Haas Group havemaintained their leading position in Germany and internationally. Theirmarket share, nationally and internationally, is between 30 and 35 per cent.This was stated by Regine Barth, managing partner of Joh. Barth & Sohn, inher address to the press in Munich. Joh. Barth & Sohn is Germanys biggestprovider of hop-related services. The company is part of the Barth-HaasGroup, with subsidiaries in Australia, China, Germany, Great Britain and theUSA. The predominant share of group turnover is earned in Germany andthe USA.

According to Regine Barth, the turnover of the Barth-Haas Group for thecurrent fiscal year ending on 31 July is expected to amount to 250 270meuros. This represents a year-on-year decrease of 10 17 per cent which,however, was due almost entirely to falling raw materials prices on the hopmarket. The number of employees working for the Barth-Haas Group hasremained essentially unchanged: in 2010 there were 625 employees with thegroup worldwide, approx. 40 per cent of them in Germany.

Enquiries to:Erich DederichsPress office, Joh. Barth & Sohn

Telephone: 0228 [email protected]


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Tel. +49-911-5489-0

Fax +49-911-5489-330E-Mail: [email protected] www.johbarth.com

Facts about the Barth-Haas Group

The Barth-Haas Group is the worlds biggest provider of hop-related services. It com-prises the following companies:

Joh. Barth & Sohn GmbH & Co. KG was founded in Nuremberg in 1794. The com-pany is the market leader in hop trading and processing in Germany. The contributionby Joh. Barth & Sohn to the total turnover of the Barth-Haas Group is approx. 45 percent. While the business activities of Joh. Barth & Sohn were originally focused ex-clusively on hop trading, since the 1960s hop processing has become the companyssecond core business field.John I. Haas, Inc. (50% of which is held by Joh. Barth & Sohn) was founded in 1914.The company owns and operates its own hop plantations, storage facilities and pel-letization, extraction and isomerization plants in the Northwest of the USA. Haas is aleader in research and development in the field of processed hop products for both

brewing and non-brewing applications.

Botanix Ltd.,which has two production facilities in Great Britain, is a centre of com-petence for hop oils and hop aroma products. In addition, Botanix produces the entirerange of downstream products on behalf of the group at its production facilities.

Hop Products Australia (50% of which is held by Joh. Barth & Sohn) is based inHobart/Tasmania and grows and processes hops for the domestic and internationalmarkets. The company runs an intensive research programme with a focus on breed-ing new aroma and alpha varieties.

Barth-Haas (Peking) Trade Co. Ltd. in the Peoples Republic of China operates inthe Chinese domestic market in conjunction with Xinjiang Green Diamond Hop Co.Ltd. in Xinjiang and Gansu Tianma Hops Co. Ltd. in Gansu. The companys activitiesinclude hop trading, processing locally grown and imported hops and selling hopproducts on the Chinese market.BetaTec Hopfenprodukte GmbH was founded in Nuremberg in 1997. BetaTec isengaged in research and development, with its core competence in the field of hops,and focuses in particular on potential applications for hop products outside the brew-ing industry. BetaTec is wholly owned by John I. Haas Inc.


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Tel. +49-911-5489-0


NATECO2GmbH & Co. KG, based in Wolnzach, began its hop extraction activities inthe 1960s. Today, the company is the world's largest producer of hop extracts andnatural substances which are made using CO2 as a solvent. The Hallertau hop grow-ers cooperative (HVG Hallertau) holds 25.1 % of NATECO2.

The Barth-Haas Group also includes Hopfenveredlung St. Johann GmbH & Co.KG in St. Johann, Germany, which has its own research brewery and state-of-the-artcold-storage facilities. The company operates the world's largest hop pelletizationplant for pellet types 45 and 90. HVG Hallertau also holds 25.1 % of Hopfenvered-lung St. Johann.

Enquiries to:Erich Dederichsdederichs kommunikation GmbHPrinz-Albert-Str. 8153113 BonnTel.: +49 228 223258Fax: +49 228 223257Mob.: +49 172 290 4967

Status: July 2010


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Statement Regine Barth in Mnchen am 15.07.2009Seite2

Africa also registered a rise of 3.6 million hectolitres, to which Angola and

Cameroon alone contributed 1.5 million and 1.1 million hectolitres

respectively.

Experts assume that the development seen in 2009 will continue in 2010.

The exact figures can be found on pages 7 and 8 of the Barth Report.

Almost 93 per cent of total beer output is accounted for by the worlds 40

biggest beer-producing countries. In 2009, output increased in only around

30 per cent of the 170 beer-producing countries, whereas it decreased in

more than 50 per cent of them further evidence of the decline in beer

consumption in global terms.

The worlds top beer-producing country is and remains China, with an output

of more than 423 million hectolitres, the equivalent of more than four times

the quantity of beer produced in Germany. As in the previous year, Germany,

with a beer output of around 100 million hectolitres, is number 5 in the

international rankings, behind China, the USA, Russia and Brazil.

Consolidation in the brewing industry largely complete? As in 2008, five groups account for 50 per cent of world beerproduction -

Expert opinion is divided as to whether the consolidation process in the

brewing industry will continue or is largely complete. The fact is that in more

than three quarters of the 20 biggest beer nations, the markets are largely

consolidated. Germany is not one of these consolidated markets, for the

largest brewing group there Radeberger has a market share of no more

than thirteen per cent. The five largest brewing groups, AB InBev, SAB Miller,

Heineken, Carlsberg and China Resource Brewery Ltd., continue to account

for nearly 50 per cent of the world beer market. It is hardly surprising that the

list of the worlds top 40 brewing groups includes only three German brewers.They are Radeberger, with a world market share of 0.7 per cent, at number


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Statement Regine Barth in Mnchen am 15.07.2009Seite3

22, Oettinger, with 0.5 per cent, at number 33 and the Bitburger brewing

group, with 0.4 per cent, at number 37. Each of the German brewing groups

has lost places in the rankings of the top 40 brewing groups year on year

and it is to be feared that this trend will continue.

Barth-Haas Group and Joh. Barth & Sohn maintain their leadingposition in the world marketJoh. Barth & Sohn and the Barth-Haas Group have successfully maintained

their leading position in Germany and internationally. Their market share,

nationally and internationally, is around 30 per cent The group comprises

companies in Australia, China, Germany, Great Britain and the USA.

However, Germany is of major importance for the group, not only in terms of

turnover.

The turnover of the Barth-Haas Group for the current fiscal year ending on 31

July is expected to amount to 250 270m euros. This represents a year-on-

year decline of 10 - 17 %. This is due almost entirely to falling raw materials

prices on the hop market. The number of employees working for the Barth-

Haas Group has remained essentially unchanged. Worldwide 625 employees

work for the Group in 2010 at 600, with 40 per cent of them in Germany.


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Tel. +49-911-5489-0




Statement by Stephan Barth

Managing Partner, Joh. Barth & Sohn, Nurembergat the press conference of 21.07.2010 at 11.00 a.m. in Munich

Too many hops are being grown worldwide

Since 2006 the world hop industry has been riding a roller-coaster. The

recession lasting until the 2005 harvest was followed by an unexampled rise

in the market. The breweries response to this took the form of long-termforward contracts, as they all assumed that growth would continue. The

reality, however, was and is quite different: the structural supply deficit on the

hop market was turned on its head in a short time to become a supply

surplus.

Let me first mention some figures (you will find substantially more in the

Barth Hop Report among your papers):

In 2009, hops were grown on an area of nearly 57,000 hectares

worldwide, a slight drop of 1.1% compared with 2008. 32% of this area is

located in Germany, 28% in the USA.

In spite of this slight reduction in area, nearly 114,000 tons of hops were

harvested in 2009, a slight increase of 2.3%. Germany accounts for 28%

of the world hop crop, the USA for 38%.


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Statement Stephan Barth in Mnchen am 21.07.2010Seite2

Alpha production I should add here that hops are traded worldwide in

tons of alpha acid rose by almost five per cent to 10,900 tons in the

same period. Germany contributes a share of 30% to world alpha

production , the USA 45%.

To return to our main subject of the supply surplus, there are various reasons

for the change in the situation from 2006 to 2008:

The world economic crisis also left its mark on the beer market. The

growth seen in the previous years slowed considerably, which can be

seen in beer production figures worldwide. Furthermore, the hop and beer

markets remain inseparably linked and will probably continue to do so

for a long time to come. A mere glance at the statistics bears this out:

97% of the hops harvested worldwide goes to the brewing industry; the

remaining 3% is used for pharmaceutical, cosmetics and wellness

products, for tea and in the food industry.

Confident that growth would continue, after the 2008 harvest in particular

the brewing industry placed long-term forward contracts, which led to an

increase in hop acreage around the world. From 2007 to 2008 planted

acreage increased by more than 12%, particularly in Germany and the

USA. Since 2008 there has been a gradual reduction in acreage. It should

be noted, however, that primarily areas planted with aroma hops have

been cleared. In 2009 the year-on-year reduction was slightly more than

1% and first estimates for 2010 forecast a further reduction of just below

8%. In our opinion, however, this is not nearly enough!

Parallel to the slowing of growth in beer output and the excessive

increase in hop acreage, many breweries have further reduced the

quantity of hops in their beers, either by cutting their hopping rates or by

using hop-saving products. Hopping rates in the brewing industry have

more than halved in the last forty years: in 1970 the average hopping rate

was 9.6 g of alpha acid, whereas in 2010 it was only 4.1 g, as

international studies by the Barth-Haas Group have shown.


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In recent years, an increasing number of new hop varieties have been

bred that produce a substantially higher alpha acid yield. It is safe to

assume for 2010 that there will be a supply surplus of nearly 3,500 tons of

alpha on the market. This is equivalent to nearly half of the total annual

requirements of the brewing industry with the result that the warehouses

in the hop industry will be bursting at the seams.

The current situation in the hop market can be summed up relatively simply:

Too many hops are being grown. If things do not change here, the hop

market will collapse sooner rather than later.

Hop growers have had a false sense of security for too long

The hop merchants have always been and still are reliable partners for the

hop growers. Our group has always seen itself as a provider of all hop-

related services and this involves more than simply the relationship

between seller and buyer. We will continue to adhere to this principle in the

future.

However, a good partnership also involves pointing out possible and

probable developments in the world market, along with the consequences to

be drawn from them. We can therefore only echo the statement by the

chairman of the Hop Research Society, who recently declared What is called

for now on the part of the hop growers is to clear, clear and clear again". And

even the chairman of the Hallertau hop growers association recently urged

upon his members the recommendation No contract no wire!. There is no

point in producing hops for a market that will not buy them. If the hop market

is to recover, further thousands of hectares of hop land will have to be

cleared also in the Hallertau region.

The volume of forward contracts held by hop growers in Germany and theUSA, the worlds most important hop-growing countries, is still comparatively


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high. This seemingly comfortable reserve of forward contracts has for too

long blurred their view of the harsh realities of a hop market that is out of

control. This is because around the world, the brewing industry agreed

excessive forward contracts as it was confident of continuing growth, which

now means it will probably not take delivery of the quantities of hops

originally planned. At the moment the world market offers no opportunities for

new forward contracts, and those who place their faith in the spot market will

only be able to sell at very low prices if at all.

Brewing industry still essentially honours contract obligations

As beer output is rising only slowly if at all due to the economic crisis, the

call-forward notices received by the hop merchants are inevitably being

delayed. Howver, the hop merchants have already paid for the hops,

practically acting as a bank for the brewing industry by providing preliminary

financing. The basic willingness of the international brewing industry to

honour its contractual obligations is gratifying, although this does not mean

that there have not been tough discussions in individual cases. We are

working closely with the brewing industry to find solutions, so that legally

valid contracts concluded in the past may be adjusted to the lower actual

requirements. What we need are unconventional solutions and flexible

market partners.

Additional applications have to be found for hops

I have already referred to the strong link between hops and the brewing

industry. 97% of the hops harvested are used in the brewing industry. In view

of lower growth in the brewing industry, the increasing use of high-alpha

varieties and the further reduction of hopping rates by the breweries, it is

necessary to make additional efforts to extend the use of hops outside the

brewing industry.


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Those who are relying on the brewing industry to return to growth will not be

successful in the long term. Of course every hop grower and hop merchant is

pleased to see that craft brewers in the USA have increased their hopping

rates with great success in recent years, but this trend alone will not be

enough to reduce the surplus of hops on the market.

Not least for this reason, the Barth-Haas Group has yet again extended its

activities with regard to opening up new fields for selling hops. In the next five

years, xanthohumol and other hop compounds will also be in the focus of

scientific interest at the University of Regensburg. This has been made

possible through the sponsorship of the Endowment Chair of "Experimental

Hepatology" by Joh. Barth & Sohn. The main focus of research here will be

on the prophylactic and therapeutic effects of xanthohumol and other hop

compounds in diseases of the liver. We are sponsoring this endownment

chair to significantly increase the amount of research on xanthohumol in the

next five years. We have succeeded in appointing an expert of international

standing, Professor Dr. Claus Hellerbrand, to the endowment chair.

To sum up, the companies with a future in hop trading are those which

address all aspects of the business and see themselves as providers of

services for hop growers, breweries and the food industry. From this point of

view I continue to be cautiously optimistic regarding the future of the Barth-

Haas Group and its subsidiaries, even though I suspect that further hard

years lie ahead for all involved.

Documents

Barth-Haas Presskit 2010