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4-2017

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.

US. Brewers Association Federal Tax Efforts Featured on Fox Business

Bob Pease, COO of the Brewers Association (BA), appeared live this week on Fox Business to discuss the Brewers Association’s efforts in support of legislation that would recalibrate federal excise taxes for America’s small and independent brewers.

Pease appeared on this national program on Wednesday, June 29, fielding questions from Fox Business host Charles Payne about the Federal excise tax bills in the House and the Senate, as well as the formation of the Senate Small Brewers Caucus.

“This interview is an indication that the BA’s—and our members’—efforts are gaining the attention of the American media,” said Charlie Papazian, BA president. “More and more mainstream outlets are recognizing the impact of small craft brewers in creating Main Street jobs and contributing in small and big ways to the recovery of the American economy.”

Status of the Federal Tax Bills

Currently, there are 90 co-sponsors in the House for H.R. 1236, with 16 Representatives serving on the powerful Ways & Means Committee. There are 35 co-sponsors in the Senate for S. 534, with 11 Members serving on the Senate Finance Committee.

The bills enjoy truly bipartisan support, with H.R. 1236 co-sponsored by 40 Republicans and 49 Democrats, and S. 534 co-sponsored by 15 Republicans, 20 Democrats and 1 Independent.

The House Small Brewers Caucus, an important forum in Washington for the small brewing community, comprises 44 Republicans and 48 Democrats. A Senate Small Brewers Caucus was formed earlier this month, indicating further support in the nation’s capital for Main Street, small brewing businesses.

August Recess An Opportunity

Congress is in session until August 9, at which time the body recesses until September 6. The August recess is an ideal time for BA members to invite their Representative or Senator to visit their brewery. These visits afford the chance to tell the brewery’s story and educate members of Congress about the challenges that Brewers Association brewery owners face in owning and operating small businesses.

5 Jul. 2011

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