Fact Or Fiction: Craft Brewers To Blame For Price Of Hops?
Craft Beer Hops Fingers keep pointing at craft brewers for their suspected role as culprits in the rise in the price of hops. American tastes in beer are shifting to prefer brews with more exotic aromatic notes such as citrus and pine. Their palates are evolving and they want more flavor from beer — the popularity of craft beers continues to rise.
India Pale Ale (IPA) tops the list of most popular craft beer styles in the country right now. To get these flavorful tones, brewers must procure the more costly aroma hops, which according to a recent BusinessWeek report , is helping hop farmers turn a profit. Now instead of shifting flavor profiles, the emphasis in the market is the volume growth.
But are craft brewers solely to blame for the rising cost of hops? Brewers Association Chief Economist Bart Watson has come to their rescue with some analysis that debunks the myth . While he does attribute 40-50% of all domestic hops sales to craft beer, he also points out two key insights that challenge this growing hypothesis.
1 – Hop prices for growers are in line with other crops. As illustrated by the graph below, hop prices are currently equalizing with the overall […]