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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.

MillerCoors may have to halt Minnesota sales

MillerCoors, the combined U.S. operations of SABMiller PLC (SAB.L) and Molson Coors Brewing Co (TAP.N), may be forced to halt sales of its beers in Minnesota due to the state government shutdown, a state spokesman said on Wednesday.

MillerCoors, the second largest brewer in the United States, failed to get its brand license to sell 39 brands in Minnesota renewed before a government shutdown over a budget impasse began with the new fiscal year on July 1.

"Without that brand label registration, their distribution and sales aren't allowed to continue," Doug Neville, a state public safety department spokesman, said.

The registration allows the manufacturing, distribution and sales of the MillerCoors brands in the state, meaning that they would also have to be pulled from liquor stores, bars and restaurants where they are sold, Neville said.

"We reached out to MillerCoors to talk to them about their brand label registration being expired and requested from them a plan to discontinue distribution and sales of their products in the state," Neville said. "We are hoping within a couple of days to have a clear idea what that looks like."

Samuel Adams brewer Boston Beer Co Inc's (SAM.N) registration is good until the end of the year, according to a company spokeswoman. Budweiser brewer Anheuser-Busch InBev (ABI.BR) did not have an immediate comment.

MillerCoors spokesman Julian Green said on Wednesday the company was working with the state to resolve the situation.

"With 39 brands at stake in one of our largest markets in the country during the most important selling period, in the summer, we do not take the business of ensuring proper state licenses lightly," Green said.

Green said MillerCoors had filed paperwork to renew the three-year brand licenses by the June 13 due date, actually overpaying initially, and submitted a second check by June 27. The renewal was never issued and neither check was processed, he said.

The renewal fees amount to $30 per brand, or $1,170. MillerCoors' beers range from Miller Lite and Coors Light to Blue Moon, Peroni and Pilsner Urquell.

"We believe it is unfortunate that we and other state licensees including retailers and other brands are being impacted by the state shutdown when we followed all applicable laws," Green said.

14 Jul. 2011



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