I recently visited El Toro Brewing Co. in Morgan Hill. I LOVED their Deuce Imperial IPA - highly recommended. Check out my pics and hit them up if you're in the area.
Cheers,
Andi
Tuesday, May 27, 2008
Monday, May 19, 2008
Hop Shortage, Will it Hurt the Wallet?
The story of the 2008 hop shortage began in 1992 when worldwide hop acreage hit its all-time maximum at over 236,000 acres. Good times. Since bumper crops led to a great excess of hops, craft brewers did not need hop contracts with farmers or hop wholesalers; they could purchase hops at will.
On the other hand, farmers got the short end of the stick. Their excess supply was converted to hop extract, which remains stable for years if stored properly (say in a refrigerated warehouse or silo similar to the hop room in Sierra Nevada). The cans of extract were often sold at a loss due to overhead, which eroded the profitability of farming hops. Seeing how it sucks to lose money, farmers converted their hop acreage to more profitable crops or selling their land to developers overseas.
By 2006, worldwide hop acreage shrunk to about 113,000 acres. Some of the reduction in hop acreage was due to higher alpha varieties being introduced and hop products with better utilization being developed, but low prices were the main culprit. Fast forward to last year's harvest. Unusual weather in Europe caused the 2007 hop crop to fall below expectations. Germany and England's crop performed as expected, but the harvests in Czechoslovakia and Slovenia fell 30% below expectations. Hop farms in this region were devastated by a hail storm just prior to harvest.
Why didn't someone see this coming? Well, some folks did, but nobody accounted for hop inventory. Roger, the master brewer of Lodi Beer Company, pieced together the puzzle for the Hop Heads. Macro-breweries who manufacture piss-water and large craft breweries who make decent beer have contracts with farmers or hop wholesalers. Typical contracts provide these companies with adequate hop supply for day-to-day needs and a 'standing inventory' in case of line expansion, experimentation, research and design, and insurance against hail on the fourth of July followed by a stampede of elephants and one baby zebra.
In the early 2000s, contracted breweries did not feel the need to maintain their standing inventory. Seeing the decrease in acreage in 2006, contracted breweries immediately restocked their standing inventories to hedge the risk of a shortage. Fast-forward to 2007 and non-contracted breweries got screwed. Hop prices on the open market skyrocketed when distributors realized there was no shot in hell that supply would meet demand. Hops that sold for $2-3/lb in 2006, started to sell up to $26 a pound. Further, since the Euro is currently strong versus the US dollar, European brewers had an economic advantage over their US counterparts. European brewers bought up much of the hops on the open market.
Unfortunately, nobody can correctly assign an accurate number to the hop deficit. Not only are non-contracted brewers hosed, but home-brewers like yours truly, suffer too. Okay, so how much more will I be shelling out for my favorite 6-pack of craft brew? Several media sources and bloggers typically report that beer prices will increase by at least $1 to $2 per six-pack, I hypothesize that prices will not materially increase in the near future. I must be insane, but maybe there is a system to my crazy-ass logic.
First, non-contracted breweries will still compete with contracted macro and craft breweries (I.E. Sierra Nevada, Sam Adams, and Russian River are contracted). The term contracted usually means paying a fixed price for a supply of goods or services. Contracted brewing costs will not change and they will still pay the same price to produce the same amount of beer (as long as their malts are contracted too, but this will be a separate article probably in 2010).
According to Roger, hop inflation has eroded the cost of production. A 10-gallon batch of ale this year, costs as much as a 15 gallon did two years ago! Since non-contracted breweries face higher costs of production, we will most likely see less product on the shelves.
Okay, but won't non-contracted craft breweries raise prices to offset their short supplies? Would you be willing to pay an extra $2 for your favorite six-pack of non-contracted microbrew? Maybe, but the rest of America does not enjoy craft beer as much as the Hop Heads. My answer to the question above is: not likely. Let's face it America is in a recession. In order to save money to pay for gasoline or groceries, people will substitute these purchases with cheaper beer including Poors, Crud, and Filler or stay with contracted craft brews like Sam Adams, Sierra Nevada, etc. With an economic downturn in mind, non-contracted breweries cannot afford to raise prices or else they will ultimately lose customers. This is why I believe we will see less product on the shelves.
Okay swami, so what does the future hold? Fortunately, growers, hop dealers and brewers are all looking for a solution to the problem. New acreage is currently being planted, but it takes 2 years in the US, and 3-4 years in Europe, before new hop acreage will produce yields. About 5,000 acres were planted in 2007 and potentially another 15,000 acres will be planted in 2008, but getting farmers to convert land to hop acreage can be difficult. Planting new hop acreage requires that the farmer invest in trellises and forego at least a year of producing something they can sell. In addition, a brand new hop farm would additionally require the purchase of the harvesting machines and ovens for drying hops, and these cost millions. Don't hit the panic button just yet, but you may need to savor your beers.
On the other hand, farmers got the short end of the stick. Their excess supply was converted to hop extract, which remains stable for years if stored properly (say in a refrigerated warehouse or silo similar to the hop room in Sierra Nevada). The cans of extract were often sold at a loss due to overhead, which eroded the profitability of farming hops. Seeing how it sucks to lose money, farmers converted their hop acreage to more profitable crops or selling their land to developers overseas.
By 2006, worldwide hop acreage shrunk to about 113,000 acres. Some of the reduction in hop acreage was due to higher alpha varieties being introduced and hop products with better utilization being developed, but low prices were the main culprit. Fast forward to last year's harvest. Unusual weather in Europe caused the 2007 hop crop to fall below expectations. Germany and England's crop performed as expected, but the harvests in Czechoslovakia and Slovenia fell 30% below expectations. Hop farms in this region were devastated by a hail storm just prior to harvest.
Why didn't someone see this coming? Well, some folks did, but nobody accounted for hop inventory. Roger, the master brewer of Lodi Beer Company, pieced together the puzzle for the Hop Heads. Macro-breweries who manufacture piss-water and large craft breweries who make decent beer have contracts with farmers or hop wholesalers. Typical contracts provide these companies with adequate hop supply for day-to-day needs and a 'standing inventory' in case of line expansion, experimentation, research and design, and insurance against hail on the fourth of July followed by a stampede of elephants and one baby zebra.
In the early 2000s, contracted breweries did not feel the need to maintain their standing inventory. Seeing the decrease in acreage in 2006, contracted breweries immediately restocked their standing inventories to hedge the risk of a shortage. Fast-forward to 2007 and non-contracted breweries got screwed. Hop prices on the open market skyrocketed when distributors realized there was no shot in hell that supply would meet demand. Hops that sold for $2-3/lb in 2006, started to sell up to $26 a pound. Further, since the Euro is currently strong versus the US dollar, European brewers had an economic advantage over their US counterparts. European brewers bought up much of the hops on the open market.
Unfortunately, nobody can correctly assign an accurate number to the hop deficit. Not only are non-contracted brewers hosed, but home-brewers like yours truly, suffer too. Okay, so how much more will I be shelling out for my favorite 6-pack of craft brew? Several media sources and bloggers typically report that beer prices will increase by at least $1 to $2 per six-pack, I hypothesize that prices will not materially increase in the near future. I must be insane, but maybe there is a system to my crazy-ass logic.
First, non-contracted breweries will still compete with contracted macro and craft breweries (I.E. Sierra Nevada, Sam Adams, and Russian River are contracted). The term contracted usually means paying a fixed price for a supply of goods or services. Contracted brewing costs will not change and they will still pay the same price to produce the same amount of beer (as long as their malts are contracted too, but this will be a separate article probably in 2010).
According to Roger, hop inflation has eroded the cost of production. A 10-gallon batch of ale this year, costs as much as a 15 gallon did two years ago! Since non-contracted breweries face higher costs of production, we will most likely see less product on the shelves.
Okay, but won't non-contracted craft breweries raise prices to offset their short supplies? Would you be willing to pay an extra $2 for your favorite six-pack of non-contracted microbrew? Maybe, but the rest of America does not enjoy craft beer as much as the Hop Heads. My answer to the question above is: not likely. Let's face it America is in a recession. In order to save money to pay for gasoline or groceries, people will substitute these purchases with cheaper beer including Poors, Crud, and Filler or stay with contracted craft brews like Sam Adams, Sierra Nevada, etc. With an economic downturn in mind, non-contracted breweries cannot afford to raise prices or else they will ultimately lose customers. This is why I believe we will see less product on the shelves.
Okay swami, so what does the future hold? Fortunately, growers, hop dealers and brewers are all looking for a solution to the problem. New acreage is currently being planted, but it takes 2 years in the US, and 3-4 years in Europe, before new hop acreage will produce yields. About 5,000 acres were planted in 2007 and potentially another 15,000 acres will be planted in 2008, but getting farmers to convert land to hop acreage can be difficult. Planting new hop acreage requires that the farmer invest in trellises and forego at least a year of producing something they can sell. In addition, a brand new hop farm would additionally require the purchase of the harvesting machines and ovens for drying hops, and these cost millions. Don't hit the panic button just yet, but you may need to savor your beers.
Thursday, May 15, 2008
Manderes - The Allagash Tasting
First off, make your way to any tasting that Manderes offers. There was a reason the greater Sacramento area voted them the #1 beer bar. The staff is excellent and the food is great.
On Wednesday, May 14th, Manderes hosted Allagash Tasting. For those of you unfamiliar with Allagash, they are a brewer based in Portland, Maine who specializes in Belgian style craft beer. Joining me that night were three other hop heads including Sheelagh, Tara, and Jason. Jason brought along his father, Jack, to give him the west coast beer dinner tour.
Onto the beer. Team Allagash brought out the White as the lead-off hitter. Allagash White is a Belgian Wit with notes of apricot, citrus, honey and nutmeg. Normally an excellent beer, but ours had a slight fault. While it is common for the style, our sample had moderate notes of acetylaldehyde, which was most likely caused by debris at the bottom of the beer or simply cannibalistic yeast. The beer tasted like green apples and if you drink enough, you don't get a hangover. While this is a novel concept, we did not exactly look for that flavor. Excellent observation Jack. While this is normally one of my favorite offerings from Allagash, I was a little disappointed, but realizes it happens.
The second beer we sampled was the Musette. The Musette is a barrel-aged Scottish ale. If you enjoy a nice, dark firkinized beer with ample amounts of whiskey flavors and hints of smokiness, this might be the brew for you.
The third pour was the Black. The Belgian Black is similar to a stout, but Allagash adds dark candi sugar and uses a Belgian yeast strain. The flavor on this beer contained dark chocolate and bits of roasted malts. However, the ester and sugar flavors consistent with Belgian beers did not stand out. This may be a good introduction beer to try if you are squeamish about Belgian esters.
Fourth up, the Interlude. I am not going on break, I am talking about the beer. This was one of the more interesting beers of the night simply because I can't compare it to anything. Another barrel aged beer, but aged in Syrah and Merlot barrels. This beer uses two types of Belgian yeasts: one deemed as typical and the other a farmhouse. I can describe this as somewhat resembling a lambic with notes of cherry, oak, citrus, and a mouthfeel of slight sourness. Interlude is its own style and I'd welcome the opportunity to try another one. Excellent job.
Number 5 is a Hop Head favorite, Allagash Curieaux. Aged in Jim Beam Bourbon barrels, with ample smokiness, and extra ummpphhh from tripel aging, it makes you appreciate the time and effort put into this beer.
The next one Four should have been served two tastings ago, but I'll let that go. Aptly named, Four is aged four times, uses four Belgian yeasts strains, several types of candi, and will make you pee four different colors (that may not be correct as a source from New England provided that information to the Herald). For those of you unfamiliar with this beer, it pours an opaque orange, with a light head, and has notes of oakiness, coriander, pear and honey. Surprisingly, it drinks fairly light for a quadrupel, which everyone enjoyed.
The seventh pour came from the Odyssey. No, not the book written by Homer or the reception hall/restaurant where my parents got married. Aged in American Dark Barrels, this beer is dark brown with notes of chocolate, oak, honey, and biscuit (bready). The mouthfeel was fairly tangy and gave a nice warming sensation. This was definitely a beer to be enjoyed in a snifter.
We were done tasting the Allagash, but Brent and Dave always remove the rubber bands and bring out the stash. The first bonus beer was the Fantome Brise Bon Bons. The crew at Fantome concocted a hard-hitting saison with lots of biscuity, malty goodness, with heavy notes of citrus. As expected, the mouthfeel had lots of sweetness, followed by bits of tartness from the bittering hops (they gotta appear somewhere!). A nice slow sipper to be enjoyed amongst friends on a hot summer afternoon.
The last of the bonus beers was the 90 Minute Dogfish Head. Hailing from Delaware, this is an east coast IPA. Lots of grassy notes at first scent, but most of them disappear in the taste to give way to a well-balanced malt complexion. A very easy drinking IPA for all palates. A great reason for craft drinkers to be excited that Dogfish Head got their license to distribute in California last month.
I had a great time at the tasting and enjoyed all of Allagash's beers.
On Wednesday, May 14th, Manderes hosted Allagash Tasting. For those of you unfamiliar with Allagash, they are a brewer based in Portland, Maine who specializes in Belgian style craft beer. Joining me that night were three other hop heads including Sheelagh, Tara, and Jason. Jason brought along his father, Jack, to give him the west coast beer dinner tour.
Onto the beer. Team Allagash brought out the White as the lead-off hitter. Allagash White is a Belgian Wit with notes of apricot, citrus, honey and nutmeg. Normally an excellent beer, but ours had a slight fault. While it is common for the style, our sample had moderate notes of acetylaldehyde, which was most likely caused by debris at the bottom of the beer or simply cannibalistic yeast. The beer tasted like green apples and if you drink enough, you don't get a hangover. While this is a novel concept, we did not exactly look for that flavor. Excellent observation Jack. While this is normally one of my favorite offerings from Allagash, I was a little disappointed, but realizes it happens.
The second beer we sampled was the Musette. The Musette is a barrel-aged Scottish ale. If you enjoy a nice, dark firkinized beer with ample amounts of whiskey flavors and hints of smokiness, this might be the brew for you.
The third pour was the Black. The Belgian Black is similar to a stout, but Allagash adds dark candi sugar and uses a Belgian yeast strain. The flavor on this beer contained dark chocolate and bits of roasted malts. However, the ester and sugar flavors consistent with Belgian beers did not stand out. This may be a good introduction beer to try if you are squeamish about Belgian esters.
Fourth up, the Interlude. I am not going on break, I am talking about the beer. This was one of the more interesting beers of the night simply because I can't compare it to anything. Another barrel aged beer, but aged in Syrah and Merlot barrels. This beer uses two types of Belgian yeasts: one deemed as typical and the other a farmhouse. I can describe this as somewhat resembling a lambic with notes of cherry, oak, citrus, and a mouthfeel of slight sourness. Interlude is its own style and I'd welcome the opportunity to try another one. Excellent job.
Number 5 is a Hop Head favorite, Allagash Curieaux. Aged in Jim Beam Bourbon barrels, with ample smokiness, and extra ummpphhh from tripel aging, it makes you appreciate the time and effort put into this beer.
The next one Four should have been served two tastings ago, but I'll let that go. Aptly named, Four is aged four times, uses four Belgian yeasts strains, several types of candi, and will make you pee four different colors (that may not be correct as a source from New England provided that information to the Herald). For those of you unfamiliar with this beer, it pours an opaque orange, with a light head, and has notes of oakiness, coriander, pear and honey. Surprisingly, it drinks fairly light for a quadrupel, which everyone enjoyed.
The seventh pour came from the Odyssey. No, not the book written by Homer or the reception hall/restaurant where my parents got married. Aged in American Dark Barrels, this beer is dark brown with notes of chocolate, oak, honey, and biscuit (bready). The mouthfeel was fairly tangy and gave a nice warming sensation. This was definitely a beer to be enjoyed in a snifter.
We were done tasting the Allagash, but Brent and Dave always remove the rubber bands and bring out the stash. The first bonus beer was the Fantome Brise Bon Bons. The crew at Fantome concocted a hard-hitting saison with lots of biscuity, malty goodness, with heavy notes of citrus. As expected, the mouthfeel had lots of sweetness, followed by bits of tartness from the bittering hops (they gotta appear somewhere!). A nice slow sipper to be enjoyed amongst friends on a hot summer afternoon.
The last of the bonus beers was the 90 Minute Dogfish Head. Hailing from Delaware, this is an east coast IPA. Lots of grassy notes at first scent, but most of them disappear in the taste to give way to a well-balanced malt complexion. A very easy drinking IPA for all palates. A great reason for craft drinkers to be excited that Dogfish Head got their license to distribute in California last month.
I had a great time at the tasting and enjoyed all of Allagash's beers.
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