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Hop Contract Issues

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  • Hop Contract Issues

    For the last five years we have been dealing with several significant issues on our hop contracts with BSG. I am reaching out to see if there are others having similar issues and alert others regarding what to be aware of / look for.

    In particular there have been and not limited to:
    - At least 50 issues with Hops purchase transactions where the accounting for these purchase transactions
    has resulted in the failure to properly apply them to contracts.
    This has resulted in:
    1. Inaccurate depletion from contracts
    2. BSG claiming high balances remaining on hop contracts which ties you into those contracts at a higher balance and longer time period
    3. BSG charging storage fees on these inflated balances, which accumulates into significant overcharges
    - Moving entire contracts to other years (not authorized or agreed to by us and not allowed in their contract)
    - Running out of stock of hops varieties still on contract, yet still charging storage fees for product that doesn’t exist.
    This also shows they don't maintain their inventories to satisfy / meet contracted obligations.
    - Substituting spot hop to fulfill orders even though balances remained on contracts resulting in the lack of deletion from the contract, and again resulting in excessive storage fees.
    Does BSG do this because of
    1. Poor accounting practices ?
    2. Don't maintain inventory to meet contracted obligations ? ( This would result in contractual failure by BSG)
    3. To increase storage revenue ? (This would be a fraudulent business practice)

    After trying to straighten this out for over five years, there has been no resolution yet we have completed an extensive internal audit, with the data provided by BSG, to point these issues out.

    In a nutshell BSG remains inflexible even though the data points provided by BSG clearly point to significant internal record keeping issues or worse yet BSG taking advantage of the Craft Brewing industry.

    If you find any similar issues, or any other issues, I ask that you message me so we can coordinate and try not help resolve these issues and ensure fairness and accuracy for the buyers