New Zealand & USA: New Zealand hops in high demand among US brewers

New Zealand hops are in demand in the United States as craft beer brewers compete to achieve a point of difference, Stuff.co.nz reported on October 1.

The Tasman District produces distinct flavours that cannot be replicated, according to Jason Judkins, chief executive of Nelson's Hop Revolution, and US brewers are keen to use New Zealand hops to stand out among competitors.

Judkins visited 50 breweries on a recent trip the US.

He says Hop Revolution will be working with about 30 of those breweries to supply next year's harvest from its 116 hectare Tapawera hop garden.

Hop Revolution is developing the garden with My Farm Investments and is in the process of buying a second property, Wairua Hop Garden, in Motueka.

Judkins says it was clear from his visit that Tapawera's hop supply could be sold many times over.

Hop Revolution wants a direct relationship with US brewers, who Judkins says are interested in a connection to the farm.

Craft beers account for 13 per cent of beer sales in the US and there are more than 7000 craft breweries in the country.

Hop Revolution is working on an allocation and partnership model and is contracted to supply 60 to 70 per cent of next year's harvest to the US.

"This allows us some flexibility to increase contracted volumes next year and allocate a portion of supply on the higher-priced spot market," Judkins says.

From next year, the company wants to establish rolling contracts with brewers of up to five years from the 2021 harvest.

Chris Swersey, supply chain specialist from the Brewers Association in the US, says 15 per cent of hops brewers use are imported.

German hops are favoured by importers, while New Zealand hops are the second most popular, amounting to 2.6 per cent of the total weight of hops used by US craft brewers.

"The industry definitely sees a flavour difference in beer brands brewed with key New Zealand hops varieties," he says.

Andrew Watters is chief executive at My Farm Investments, which is offering syndicate investments in Hop Revolution's Wairua Hop Garden. Watters says a distinct feature of craft beers is the hops that are used.

"It's quite unique that a relatively small constituent in the product, the hop, makes a big, big difference to the flavour, aroma and taste of the resulting beer," Watters says.

The Tasman District's soil, climate and growing season combine to give its hops an advantage, he says.

Hop Revolution has planted trademarked cultivars Riwaka, Nelson Sauvin, Pacific Sunrise and Motueka.

"Craft brewers are crawling over each other to try and get hold of good, reliable, consistent supply of hops so that they can put down brews with our product in place," Watters says.

He says New Zealand hops attract a premium price worldwide. "We can certainly be strong number one in terms of the value and price that we're able to achieve."

Kiwi, Matt Cronin is co-founder and head brewer at Astro Lab Brewing in Silver Spring, near Washington, DC.

Cronin has brewed with New Zealand hops since Astro Lab Brewing opened last October and often blends them with hops from the US, Germany and the United Kingdom.

He says most of his hops come through US suppliers and hop farms, which have relationships with New Zealand hop suppliers.

He has been lucky maintaining supply, he says, but he has been proactive seeking out New Zealand hops and has been fortunate to pick up surplus hops from brewing friends.

"New Zealand hops have a premium attached and the spot market is crazy," Cronin says.

"I try to brew innovative, hop-forward beers with unique flavours and aromatics, so the price is well worth the expense."

The New Zealand factor is important from a personal perspective for Cronin but he also says the beers that feature New Zealand hops are best sellers and he enjoys showcasing products that New Zealand farmers produce.

Cronin says the strong demand for New Zealand hops is tied to the "unique attributes of the hops and exceptional quality".

"If more hops could make it to the US market without shorting New Zealand brewers or sacrificing quality, I think they would continue to grow in popularity."

Next week, Cronin and his business partner are going to Denver to pour beers at the Great American Beer Festival.

Cronin is also brewing a single-hop riwaka India pale ale to mark Astro Lab Brewing's first anniversary.

Craft brewer hop consumption in the US grew 13 per cent last year, according to the US Brewers Association, due to an increased hopping rate.

Swersey says the the market for craft beer is expanding in a significant way.

US beer volume sales were down 1 per cent last year, but craft brewer sales grew at a rate of 4 per cent by volume, reaching 13.2 per cent of the beer market by volume.

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