Membership questions? Log in issues? Email info@brewersassociation.org

Author Topic: Effects of craft beer going global  (Read 2680 times)

Offline klickitat jim

  • I must live here
  • **********
  • Posts: 8604
Re: Effects of craft beer going global
« Reply #15 on: October 03, 2015, 08:40:28 pm »
That is why smaller breweries have hop contracts. The growers use contracted hops to justify going to the bank for a loan to put more new hops in the fields. There are ones that deal on the spot market, but volatility can be a problem there (availability and price).

The big breweries have contracts too, but some of those would be for Alpha hops that are turned into extract.
The way I hear it, contracts dont guarantee that the brewery gets its contracted hops though. A monster can make a call and end up with them, and the craft sized guys are out of luck, contract or no. Marshalls latest test may prove valuable. Maybe we should start squirreling away pellets for the future.
Really? I know there are clauses due to poor crop years so that you get prorated amounts of what you contracted. If they can sell out from under you, what kind of a contract is that?
That is how it's been explained to me. Brewery commits to buying, but grower isn't committed.  IF they have them, great. If they don't have what they want they can sub out. Like if they don't have cascade, maybe you can sub simcoe or mt hood.

Offline reverseapachemaster

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 3777
    • Brain Sparging on Brewing
Re: Effects of craft beer going global
« Reply #16 on: October 04, 2015, 09:18:27 am »
Really? I know there are clauses due to poor crop years so that you get prorated amounts of what you contracted. If they can sell out from under you, what kind of a contract is that?

It's a contract to buy. If the grower has the hops then the buyer has to buy them at the agreed price but the grower is not committed to tender the hops to fulfill the contract. Generally the farmers are going to fulfill contracts because they want those guarantees before committing cash to fields but they don't want to be on the hook for paying the costs of a bad harvest caused by natural factors.
Heck yeah I blog about homebrewing: Brain Sparging on Brewing

Offline TexasHumuluslupulushead

  • Assistant Brewer
  • ***
  • Posts: 120
  • Austin Zealot
Re: Effects of craft beer going global
« Reply #17 on: October 04, 2015, 09:40:20 am »
Maybe we can create a couple thousand profiles on the beer rating sites and start raving the hell out of some garlic bomb 100% chinook IIIPA... let the mega marketers chase that ghost a while

  Add some Summit to the description and it wouldn't be far off.  ;D

Glad Im not the only one that gets garlic from summit
I feel sorry for people who don't drink. When they wake up in the morning, that's as good as they're going to feel all day.    -- Dean Martin

Offline hopfenundmalz

  • Global Moderator
  • I must live here
  • *****
  • Posts: 10678
  • Milford, MI
Re: Effects of craft beer going global
« Reply #18 on: October 04, 2015, 11:11:00 am »
Really? I know there are clauses due to poor crop years so that you get prorated amounts of what you contracted. If they can sell out from under you, what kind of a contract is that?

It's a contract to buy. If the grower has the hops then the buyer has to buy them at the agreed price but the grower is not committed to tender the hops to fulfill the contract. Generally the farmers are going to fulfill contracts because they want those guarantees before committing cash to fields but they don't want to be on the hook for paying the costs of a bad harvest caused by natural factors.
Yeah, I get that part about the poor crop harvest. One of the local breweries only got 1/2 or 2/3 of the Saaz contract back in 2007/2008 due to the poor harvest in Saaz region. Adjustment had to be made to keep a popular beer flowing.

What I was questioning them selling to the highest bidder, i.e. the big brewers. Do the farmers and brokers sell to the highest bidder in a poor year, not honoring the contracted portion? The spot market would be the Wild West, as it can be.
Jeff Rankert
AHA Lifetime Member
BJCP National
Ann Arbor Brewers Guild
Home-brewing, not just a hobby, it is a lifestyle!

Offline denny

  • Administrator
  • Retired with too much time on my hands
  • *****
  • Posts: 27090
  • Noti OR [1991.4, 287.6deg] AR
    • Dennybrew
Re: Effects of craft beer going global
« Reply #19 on: October 04, 2015, 12:11:25 pm »
I'll try to get there next year. Sounds like a hoot

They've already asked me to be a speaker again next year.   Dates are 9/1-2.  See ya there!
Life begins at 60.....1.060, that is!

www.dennybrew.com

The best, sharpest, funniest, weirdest and most knowledgable minds in home brewing contribute on the AHA forum. - Alewyfe

"The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts." - Bertrand Russell

Offline denny

  • Administrator
  • Retired with too much time on my hands
  • *****
  • Posts: 27090
  • Noti OR [1991.4, 287.6deg] AR
    • Dennybrew
Re: Effects of craft beer going global
« Reply #20 on: October 04, 2015, 12:13:02 pm »
The way I hear it, contracts dont guarantee that the brewery gets its contracted hops though. A monster can make a call and end up with them, and the craft sized guys are out of luck, contract or no.

Could be, but I'd be surprised.
Life begins at 60.....1.060, that is!

www.dennybrew.com

The best, sharpest, funniest, weirdest and most knowledgable minds in home brewing contribute on the AHA forum. - Alewyfe

"The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts." - Bertrand Russell

Offline klickitat jim

  • I must live here
  • **********
  • Posts: 8604
Re: Effects of craft beer going global
« Reply #21 on: October 04, 2015, 04:18:37 pm »
I'll try to get there next year. Sounds like a hoot

They've already asked me to be a speaker again next year.   Dates are 9/1-2.  See ya there!
Vacation bidding in about a month. Fingers crossed

Offline b-hoppy

  • Assistant Brewer
  • ***
  • Posts: 166
Re: Effects of craft beer going global
« Reply #22 on: October 04, 2015, 04:41:24 pm »

Could be, but I'd be surprised.

Don't be, money talks.