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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.

Judge Rules Against Molson Coors in NHL Sponsorship Spat

A Canadian judge on Friday put Molson Coors Brewing Co.'s (TAP) sponsorship deal with the National Hockey League in doubt after ruling the league had reneged on an existing deal with Labatt Breweries, according to the Toronto Star.

The Ontario Superior Court ruled for Labatt, which claimed it already had a Canadian sponsorship agreement in place with the NHL before Molson Coors signed its seven-year North American sponsorship pact in February, the paper said. Labatt said in February that it negotiated a "good faith" contract extension through 2014, The Wall Street Journal reported at the time.

The NHL deal was a coup for Molson Coors, which had lost its sponsorship of the National Football League to rival Anheuser-Busch InBev NV (ABI.BT, BUD) last year. Anheuser-Busch owns Labatt, and Labatt brews Budweiser and Bud Light for the Canadian market.

The Molson Coors deal would make Molson Canadian the official beer of the NHL, with additional consideration for Coors Light.

Justice Frank Newbould recommended an injunction against an NHL-Molson Coors agreement "so far as the Canadian rights are concerned," the Toronto Star reported. He said Molson Coors knew the league was already partnered with Labatt, according to that paper.

Molson Coors is deciding whether to appeal the decision, the Toronto Star reported, while the NHL declined comment.

5 Jun. 2011



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