California Contract for the Sale and Purchase of Hops

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Multi-State
Control #:
US-01155BG
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Word; 
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Description

Hops are a flower used primarily as a flavoring and stability agent in beer. There is no major commercial use for hops other than in beer. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

By Peter A. Kopp. Hops are perennial, cone-producing, climbing plants native to Europe, Asia, and North America. While originally cultivated for ornamental or medicinal purposes over a thousand years ago, brewers across Europe began to use hops to flavor and preserve beer by the fifteenth century.

Food Products Sales of food products intended for human consumption are not subject to sales and use tax. Therefore, ingredients used in the production of beer that are considered food products, such as grains, hops, and yeast are not subject to sales and use tax.

Hops are then added throughout the boil at different segments, saving the aroma (finishing) hops for use toward the end. The later they are added in the process, the more their aromatics are emphasized and the less bitterness they impart. The beer is cooled, yeast is added, and then it ferments.

Tennessee. Tennessee has the highest tax rate for beer in the country, a whopping $1.29 per gallon.

Most wines are grown on local estates, yet the ingredients in beer often come from a catalogue. It can be difficult to find locally-grown hops, barley and other ingredients in the U.S. and Canada. North American hop production is concentrated in the Pacific Northwest, while a lot of barley comes from the Dakotas.

Hops are expensive. They range anywhere from $2.50 per ounce to over $5 for coveted varieties such as Galaxy and Sabro. Certain beer styles such as New England IPAs regularly require up to 2 ounces of hop pellets per gallon to make.

Basically, hops sell at from $3-15 per pound. When plants are mature, the yield can be 1,800 pounds per acre. Most craft breweries contract for 90% of the hops they use.

Hop contracts ensure you can secure the varieties and volumes you need at a fixed price and from a consistent crop year lot. Vital to the ongoing success of breweries of all sizes, contracts help mitigate risk while providing peace of mind.

As a high-demand agricultural commodity, hops are subject to myriad forces that can greatly impact the price and availability of certain varieties. Weather conditions, total acreage, harvesting and processing infrastructure, consumer demand, and shifting tastes all affect the market.

Hops help to keep beer fresher, longer; help beer retain its head of foama key component of a beer's aroma and flavor; and, of course, add hoppy aroma, flavor, and bitterness.

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California Contract for the Sale and Purchase of Hops