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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.

Philippines. Court of Tax Appeals decides to return erroneously collected excise tax to San Miguel Brewery

The Court of Tax Appeals has directed the Bureau of Internal Revenue to return over P699 million “erroneously” collected excise tax to San Miguel Brewery, a subsidiary of San Miguel Corp, The Standard reported on December 18.

In an 18-page order, the tax court en banc upheld the previous decision of the Third Division that San Miguel Light should not be subject to higher excise tax rate because it was a new product.

Contrary to BIR’s revised classification, the court said SML was not a variant of the old San Miguel Pale Pilsen that would subject it to a higher tax bracket.

San Miguel Brewery paid the tax in protest in 2010 to be able to withdraw from warehouses and distribute the product.

The tax court said San Miguel Light was different from San Miguel Pale Pilsen since it was labeled by the manufacturer as a new fermented liquor.

According to the CTA, the size, shape, and color of the two products were different.

It said San Miguel Light was introduced in the market between January 1997 to December 2003, the BIR classified it then as a new brand.

Pursuant to Section 143 of the Tax Code, the court said the classification by the BIR could not be revised except by legislation, hence its lower tax schedule cannot be unilaterally prescribed by the BIR.

23 Дек. 2015



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