E-Malt.com News article: New Zealand: Craft beer prices may have to rise because of hop shortage

A number of factors, including droughts in the United States and Australia, combined with a growing demand for hops, means beer prices may have to rise, New Zealand’s Stuff.co.nz reported on February 14, citing local brewers.

Black Dog Brewery manager Adrian Klemp said all beer makers were feeling the squeeze because of the global demand for hops.

Klemp said hops can be sourced from a number of countries, including New Zealand, but the demand for aromatic US hops such as Simcoe, Citra and Amarillo – which give tropical fruit-flavours to pale ales and IPAs – is at an all-time high.

"The prices of all the American hops have sky-rocketed, they are very expensive. A lot of the smaller breweries can't commit to those prices, so it is very difficult."

He expected the cost of craft beers to rise, especially for American pale ales, because the price of some of the hops needed to create the brew had doubled in the past year.

Klemp said it wasn't the first time prices had spiked. In 2012 there was a similar problem of demand outweighing supply.

"It might work itself out if people start using local hops, but the flipside is certain - New Zealand varieties are now getting more and more difficult to get due to demand," he said.

The same view was shared by Baylands Brewery owner Aidan Styles, who said their prices would have to increase for some beers due to the shortage.

Jos Ruffell, from Garage Project, said the huge growth of the American craft beer scene meant their domestically grown hops were being bought up by local brewers. He said other factors causing strain on the industry included the government's alcohol excise tax.

"The whole craft industry has seen phenomenal growth lately. In America there are over 4000 breweries, the scale of some of them is immense. Late last year we went up to the States and they are making hundreds of millions of litres a year of big hoppy beers. Their hop usage is significant.

"This is a problem the entire industry has at the moment. We are in a fortunate case because we are a tiny brewery. We can work hard to make sure we get the hops we need."

He said that, despite prices going up, they would still endeavour to buy the hops needed to make their line of beers.

"We have never taken an attitude of worrying about the costs of things before we brew it, otherwise we wouldn't brew beers with truffles or other exotic ingredients. We just want to make the highest quality, the price is going to be the price."


17 February, 2016