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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.

Court Upholds Molson’s NHL Deal

An Ontario appeals court Tuesday upheld Molson Coors Brewing Co.'s sponsorship deal with the National Hockey League, but the months-long spat with Anheuser-Busch InBev NV's Labatt Breweries, the league's longtime Canadian sponsor, may not be over.

Labatt said in a statement that it will continue to fight the court's decision and announced new sponsorship deals with three Canadian NHL teams. Budweiser beer, which is under Labatt's umbrella in Canada, will sponsor the Vancouver Canucks, Calgary Flames and Winnipeg Jets, effective in October. That brings the total number of NHL teams that Budweiser and Bud Light sponsor to 24 out of 30 teams in the league.

Molson Coors, whose sponsorship deals with the Canucks and Flames ended this month, now has deals with four of the seven Canadian teams and 12 U.S. teams, not all of which are exclusive. The Molson family owns the Montreal Canadiens.

The court overturned a lower court's ruling in favor of Labatt, which claimed it already had a Canadian sponsorship agreement in place with the NHL before Molson Coors signed its seven-year North American pact in February. Labatt said then that it had already negotiated a "good faith" contract extension through 2014, but the appeals court found that the lower court misinterpreted that as a binding agreement.

The agreement between Molson Coors and the NHL was widely reported to be worth almost $400 million, the largest sponsorship deal in the league's history. It makes Molson Canadian the official beer of the NHL, with additional consideration for Coors Light.

At an appeals court hearing last Thursday, attorneys disclosed that the Labatt deal was worth just C$36 million ($37.2 million) over three years, according to the Toronto Star.The NHL deal was considered a coup for Molson Coors, which last year lost its sponsorship of the National Football League to Anheuser-Busch, which also sponsors Major League Baseball.

14 Jul. 2011



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