US thirst for craft beers refreshes British hop growers

As Kent hop grower Tony Redsell prepares for September's harvest, he reminisces about the days when the beer ingredient was handpicked.

Before the task was mechanised in the 1960s, workers from the east end of London came to Kent on hop-picking holidays. "We had swarms of ladies coming in the summer, as it was a nice way to get away from the smog. Their children would run around and their husbands would come down from London on the weekends," says the 81-year-old.

Now the fourth-generation hop farmer says he is seeing another big change in the market - the rise in demand from small independent brewers in the US, who are catching up with the UK's craze for craft beers.

"I'm planting more acreage myself this year because of demand. I know my neighbour is doing the same," says Mr Redsell.

The craft beer boom has spread globally, but much of the demand for British hops - used to add flavour and bitterness to beer - is coming from US microbrewers.

The US and Germany dominate world hop production, with a more than 30 per cent share each, while British hops - mainly grown in Kent, Herefordshire and Worcestershire - account for 1.6 per cent of the world's output.

US imports of UK hops grew 65 per cent to just over 600 tonnes in 2013 from five years previously, according to the Hop Growers of America.

"The American market has been very, very good for us. There is a very strong demand for English flavours," says Mr Redsell.

While Britain's craft beer sector is importing hops from the US and New Zealand to diversify away from the distinct flavours of native brews, the US in turn is looking to the UK to provide different tastes.

The good news for UK growers is that craft beers use between four to 10 times more hops than mass market lagers.

Last year the number of US craft breweries rose 15 per cent to 2,768 and, while their share of the beer market is not large at 8 per cent, consumption is growing rapidly at a time when the overall beer market is shrinking slowly.

Stephan Barth of the Barth-Haas Group, a leading hop trader headquartered in Germany, says the growth in the US will continue to support demand for UK hops. "Increased competition will see craft brewers produce more seasonal and special beers such as English special bitters and porters to differentiate themselves," he says.

<

The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.

"The cold salt-laden winds off the Thames estuary influence the taste of hops grown in Kent," says Mr Redsell.

The British hops merchant Charles Faram, which has an office in Portland, Oregon, the US hop-growing heartland, says it has been deluged with inquiries from breweries about importing from Britain. "Americans are looking for something different," says Faram's Andrew Whalley.

The strong demand has meant that prices for UK hops have been firm. This year, hops sold for £350 a zentner (a unit equal to 50kg) up from £250 five years ago. Prices of about £450 per zentner are being offered for the 2017 and 2018 harvests, according to hop specialists.

However, although the UK is among the top 10 beer producers in the world, its hop production has fallen dramatically since its 19th-century peak. At its height about 77,000 acres of hops were being cultivated, a figure that has fallen to 2,427 acres now. The industry has also suffered from competition from imports, higher production costs and a fungal disease called wilt.

But now British growers are hoping the newly-found demand from the US reinvigorates the sector.

Mr Redsell points to his 24-year-old grandson returning from Norfolk to take over his Kent farm as a sign of the industry's rejuvenation. "My own grandson, he'll be coming back next year and I'll be able to stand down. It's good that it's not just geezers like us," he says.

© The Financial Times Limited 2014. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation