Drink-a-Pint

I’ve been reading dribs and drabs about the hops shortage for months, but it looks like the story could be getting bigger as the demand for craft beer continues to increase while supplies are reportedly at a low not seen since the 19th century.

For the uninitiated, you need four things to make beer: water, malted barley, yeast and hops. Hops contain acids, which give beer its bitterness, as well as oils that give beer some of its flavor and aroma. Adding hops to beer also helps keep beer from spoiling.

Marketwatch has a great article and clip about the situation: 

So, we’re looking at a classic supply-and-demand situation, where craft brewers with smaller hop reserves are now forced to buy them for as much as five times what they went for only a year ago. For beer lovers, that could mean an extra $1 - $2 for a six-pack in the short-term as brewers pass expenses along. In the long-term, it’s an issue that will eventually work its way up the pole to the big brewers like Anheuser-Busch, Molson and Miller, who have yet to feel the effect of higher hop prices thanks to their vast supplies. It could also make it harder for smaller breweries to compete for hops in the future as the bigger breweries and larger craft brewers, such as the Boston Beer Company, flex their purchasing power to ensure they maintain their hop supplies.

Definitely something I’ll be keeping an eye on in the coming months, as this situation couldn’t come at a worse time for the craft beer brewers. Last year, sales reportedly jumped 16% and walking down the beer aisle has become a real adventure with rows and rows of unique and fun beer to choose from. While this won’t set us back to the world of the Pine Hill Tavern near my house, where they only have Bud, Miller and Coors on tap, it could knock a few of the smaller, quirkier beers off the shelves.