Hop farmers are adapting to the dynamic craft beer industry by staying flexible with their growing and ingredient plans, according to recent insights. Brian Tennis, co-owner of Hop Alliance, highlighted the shift towards just-in-time ordering and shorter-term contracts as key strategies for success.
“Our business is busier than ever, with sales up 9-10% over last year,” Tennis told PorchDrinking. He noted that brewers are now buying smaller quantities more frequently, reducing their own hop inventories and relying on timely deliveries.
Many brewers are moving away from long-term contracts, opting instead for one- or two-year agreements. “You don’t want to be locked into a five-year contract for a beer that might fizzle out,” Tennis explained. He also observed a trend towards public hop varieties, which are not owned by any particular entity and can be grown by anyone, as opposed to proprietary varieties like Citra and Mosaic.
“I hope brewers keep using public hop varieties because they are crucial for small independent growers. It helps us stay relevant and in business,” Tennis added. The current surplus of popular varieties like Citra and Mosaic has also impacted prices, presenting challenges for smaller growers.
Audrey Gehlhausen, co-founder of Billy Goat Hop Farm in Colorado, reflected on the changing market conditions since she started her business in 2017. “Prices were rising back then, making it an attractive industry. Now, breweries have no incentive to commit to long-term contracts or high prices,” she said. Gehlhausen emphasized the need to cater to small breweries, selling 100-300 pounds of hops annually to multiple clients to remain competitive.
Despite these challenges, Nick Zachrich, co-owner of Zachrich Hop Yard in Ohio, remains optimistic about the evolving craft beer sector. “There are always new breweries opening, creating more opportunities,” he said. Zachrich likened the business to a well-kept secret fishing spot, hinting at the competitive advantage of strong relationships with smaller brewers.
Zachrich also noted that while traditional varieties like Cascade are reliable, newer varieties such as Cashmere, despite its fluctuating popularity, still hold potential. “The sector isn’t done with that variety just yet,” he suggested, highlighting the ever-changing nature of beer and hop trends.
