Competition Good for Hops, Farmers and Brewers

Attention Craft Brewers:

I hope this note finds you in a robust spirit as we settle in to the new year. Fortunately, we have much to be upbeat about – craft brewing is one of the few bright spots in an otherwise dismal economy. Every day it seems we’re hoisting hoppier beers and welcoming more happy converts.

As you plan your future hop needs, please consider Indie Hops.

• Our prices may not be the lowest you can find but they will be competitive enough to not have a significant effect on the hop portion of your COGS. If it's more, it will be a tiny fraction of the $10 more per lb. you were paying just recently and it's a fair price to pay to insure that everyone in the supply chain is healthy so that the hop supply stabilizes.

• After several years of selling hops at a 400% markup, the de facto hop cartel in Yakima can afford to offer new contracts virtually at cost in order to keep you dependent on them when the next price cycle comes along. Yes, there was a tight market in 2008 and it is reasonable that brewers without contracts would have to pay more that year. However, the very next year 7,000 additional acres of hops were put in and there was no longer a shortage to justify the long contracts at record high prices. Having few alternatives, you had little choice but to agree to lopsided terms.

• Do you want to reward the Yakima merchants for this behavior by giving them all of your business now that spot prices are low? Unless Indie Hops and others are around to offer competition the next time the supply tightens, you will once again have no choice.

So having said all that, I politely encourage you to continue to diversify. Buy from your current suppliers. Buy directly from farmers. Buy locally. Buy from overseas. And buy from the new guys with the lightly processed fresh pellets who believe in promoting publicly owned cultivars – Indie Hops. Spread the love, lower the risks of controversial shortages, promote hop and hop farmer diversification, and make a new friend with a fresh spirit.

Keeping competition alive will be as good for the hop industry as it has been for the brewing industry. We appreciate your support.

Cheers!

Roger

Available hops: http://www.indiehops.com/pdf/IH_Order_Form.pdf

2011 crop: http://www.indiehops.com/pdf/IH_contract_pricing.pdf

The Art and Science of Hop Substitution Charts

We are often asked how the “Hop Substitution Charts” available on the web came about. There is some variation among them, but many appear to be carbon copies of each other.

What are they based on? Hop chemistry? Parentage? Sensory Panels? Educated guesswork? Test brews? Marketing sleight of hand? I asked my friends at OSU and the consensus was anywhere between “pseudo-science” to all of the above.

If anyone has any insights on the basis (or reliability) of the hop substitution charts (e.g., see http://www.byo.com/resources/hops) please let me know.

We aren’t so bold as to assert that one hop can be “substituted” for another – at least not without accurate genetic and sensory information. We prefer to say that one might present a suitable “alternative” for another.

When the hop “shortage” struck in 2008, many brewers scrambled to find substitutes for aroma hops. Many brewers tapped higher alpha varieties and to this day have stuck with them. One macro-consequence of this recipe change has been a decrease in the production and usage of aroma hops compared to pre–shortage years.

The recent New Brewer reported substantial decreases in the US acreage of workhorses such as Cascade and Willamette, while acreage in the “dual purpose” powerhouse Centennial has actually increased since 2008.

Based on anecdotal encounters with brewers, I’ve noted a trend towards simplification of the aroma hops used. It appears that while usage of public varieties, such as Sterling, Cascade and Mt. Hood has fallen, proprietary cultivars, such as Amarillo, Palisade and dual purpose Simcoe has gone up.

Of course, when a hop is proprietary, the owner can limit which farmers can grow it. The owner stands to obtain a licensing fee or royalty from the sale of the hop from the grower to the owner/merchant.

Random Sampling of Web-based Hop Charts: Brew 365 Bitter Brewer Knight's of the Mashing Fork South Atlantic Home Brewer (Please note, this is a large .pdf file)

Since many of the hop merchants in Yakima also own patents on hop cultivars (e.g., Simcoe, Palisade, Citra, Amarillo, Warrior), it’s no secret that between public and their own varieties they’d rather push their own. That’s simply an illustration of the guiding hand of self-interest in a capitalist, laissez-faire economy.

But when each Yakima hop merchant pursues their own self-interest, is it true that Adam Smith’s “invisible hand” magically makes sure that hop varieties are fairly and propitiously allocated in a way that insures the march of the craft revolution?

Is the trend towards less diversity of the hop supply good for crafties? Is the consolidation of hop acreage in Yakima good for crafties? Should crafties rely on foreign imports when suitable varieties can be grown less expensively and more reliably in the US? Do crafties benefit when each year we see fewer heritage hop farmers willing to give it another go? Is the risk of over dependence on a narrow menu of varieties acceptable?

These are big questions. I’m sure the patent owners can make a strong argument that their hop inventions are unique and superior. There’s absolutely nothing wrong with owning patents. It takes years of R & D to bring home a winning cultivar – such as Citra. The question that intrigues us is not whether a proprietary hop is unique, but how unique is it?

That’s where the “substitution” charts come in. Within the framework of the aroma hops breeding program we sponsor at OSU, we will be looking at the design of a “sub” chart that is based on science and sensory analysis.

In the meantime, when brewers ask us for an “alternative” to Simcoe, we suggest Chinook, based mainly on the grapefruity aroma and the similar alpha acid profile (Centennial’s another choice). We’re not absolutely sure on parentage of Simcoe, since it’s proprietary.

It may be best to suggest blends of hop varieties to attain a particular character. As an example, it might be useful to say, “instead of Simcoe, use 50% of Hop A, 25% of Hop B, and 25% of Hop C.” Of course, as OSU continues to develop crosses in the pursuit of unique aroma hops, perhaps the day will come soon when the choice will be simple.

As we explore these questions, we’re always learning more from you about what works. Have you on a lark or hunch swapped out one variety (or blend of varieties) to imitate or, better yet, emulate a go-to hop? How did it go? We’d love to hear about your fortuitous trials and even your not so happy errors.

Roger Worthington
12/3/10

IH takes the “Lupulin Lamp” Road Show to Austin, Texas

AUSTIN, TX. Back in The Day, circa 1980, living in an un-air conditioned sweat box a few clicks west of the UT campus, my roomies and I drank beer to get drunk and hydrate. We didn’t sip, we slugged. We didn’t taste, we chugged. The brand didn’t matter – Texas Pride, Pearl, Lone Star, Buckhorn – as long as it was cheap and very, very cold.

But in time this herd animal began to aggressively seek new pastures. It was Austin and punk rock was the rage. Conformity had become the enemy. So I ventured out and tried Shiner Bock, a darker beer, brewed with artesia well water and a darker malt in the tiny town of Shiner about 70 miles south of Austin.

Shiner back then was reputed to be a low-grade beer. “The dregs from the kettle.” It tasted fine to me – had a bubbly mouthfeel – but looking back it became my beer of choice mainly because it became associated with the Austin counter culture. Ok, Shiner was also kind enough to sponsor the first bike racing team I ever joined (10 kegs a year!).

I just returned from Austin, 30 years after my first Shiner Bock. Shiner’s no longer considered the beer of choice among deviants, nihilists and nutjobs. It’s gone mainstream. It’s been replaced by a bevy of beers that are being brewed right there in the heart of Austin by an expanding coterie of edgy, creative craft microbrewers.

Talk about a delight. Craft is everywhere – in the bars, restaurants, liquor and grocery stores. Texas got a late start in the revolution courtesy of the capitalism-hating, monopoly-loving Texas legislature, which to this day forbids microbreweries from selling beer directly to the public.

It’s not all surprising that craft – the little engine that could – would take off in Austin, a progressive college town which brought us Whole Foods. In a town of about 800,000, Austin boasts three microbreweries: Live Oak (the grand daddy, established circa 1993) and newcomers Independence Brewing and (512) Brewing Company.

Other microbrewery upstarts include Black Star Co-op, Thirsty Planet Brewing, and Jester King (spanking new). Brewpubs include Lovejoys, North by Northwest Brewing and the Draught House Pub, which has been offering an impressive variety of beers since 1968 (try their Hop School IPA, which showcases Citra hops).

I spent a couple of days visiting with the brewers at Live Oak, Independence, (512) and Black Star. We tested out Indie Hops coarsely ground, ¼ inch Type 90 pellets against the pellets they’re using, a fun little test which by now you’ve read about.

I have to give a shout out to Justin Rizza, the brewer for Independence. He studied the way our pellet particles slowly fell and then slowly burbled back up to the surface, creating a self-perpetuating loop. “It’s like a … lupula lamp,” he observed, wondrously, referencing the iconic lava lamp which, to this old dog, in combination with a few Shiner Bocks and Willie Nelson’s “Star Dust Memories” on vinyl, proved to be a strong aphrodisiac to the one maybe two ladies brave or desperate enough to venture into my lair over there at Radkey Manor back in The Day. But that’s another story.

I called Justin a week later. He was intrigued enough with the experiment to store the pints of hops in his fridge to see whether his supplier’s hop pellets would eventually separate. They did break up eventually, he reported, but the differences between the dispersion, oil suffusion and aroma remained stark.

“The pint was no longer crystal clear – you could see some yellowing, but it wasn’t nearly as rich as yours,” Justin said. “I could smell the hops from your pint, but the other gave off only the slightest hint of hop aroma. It smelled like water.”

Without belaboring the point, it’s this budding hopmeister’s opinion, based on field experimentation at four breweries in Austin, that my brewery friends in the Violet Crown City are not getting the best hops from Yakima. In general, the pellets were rock hard, shiny, powdery and insipid.

In short, there’s big room for big improvement. The craft revolution in the Lone Star State is gaining speed. Texans are less motivated to choose a beer based on price and temperature alone. Austinites, in particular, are beginning to demand farm fresh quality. They’re unlearning their habit of washing down that plate of Tex-Mex cheese enchiladas with a generic hopless Mexican beer.

Hey, this is personal. Austin is an oasis in a desert of industrial lite beer drinkers. It’s the epicenter of the movement, and to fan out eventually towards El Paso, Beaumont and Lubbock, it’s got to be driven by game-changing taste. The revolution cannot be won with rock hard, dull and dried out hop pellets.

This hopster, who was raised in Corvallis, Oregon but schooled in Austin, Texas, stands ready to help lift the quality of all Texas craft brewed pints with the finest, oiliest and fattest hop pellets from that green little state in the Northwest, where they’ve been growing the finest aroma hops and brewing some of the finest craft ales for decades. Getting better at football, too.

Roger Worthington
11/16/10

MacTarnahan’s Puts Indie Hops to the Test

Portland, OR. We’ve been asking for brewer feedback and we got some.

MacTarnahan’s, which has been brewing award-winning craft brews in Portland since 1986, heard about our new hop pellets and decided to test them out against their current inventory.

Everybody knows that MacTarnahan’s flagship beer is their Amber Ale, which is truly an Oregon original. This bold, copperish “English style” pale ale showcases Cascade hops and Cascade only. They’re used for bittering, aroma and they dry hop with it as well. Talk about your all-purpose utility hop.

Now many brewers who are blessed with a leading money winner object to change. They got a winner and they stick with it. Mostly, this is a reasonable strategy, except for two things:

First, natural ingredients, like hops, over time, can lose their edge (or “brightness”). Heck, hop flavor can swing from the same variety during the same year from the same farmer but grown on different farms or harvested at different times.

Second, whether you’re on top or trying to get there, complacency is the enemy of progress. Yes, yes, there are those who would fall back on the old nostrum – if it ain’t broke, don’t fix it. Sounds good, but leaving well enough alone in the ever-changing craft beer world sometimes just isn’t good enough.

So imagine our surprise, and elation, when veteran brewers Tom Bleigh and Vasili Gletsos (the new Head Brewer for North American Breweries(NW Divison/Portland location), which owns a bunch of crafties, like Magic Hat, Pyramid and MacTarnahan’s), informed us that they wanted to pit our Cascade pellets against their current vendors’ in test batches of their most popular brew, Mac’s Amber Ale.

According to Tom, Plant Manager of what most people know as the Portland Brewing Company, tinkering with a winning recipe in the pursuit of perfection shouldn’t come as any surprise. Although his brewery is under new ownership, the commitment to excellence, he says, has actually gone up.

“We’re constantly looking for ways to improve our beers and our brewing process so that it’s focused on being efficient, environmentally friendly, and insuring quality in raw ingredients and finished products,” said Tom, who’s been brewing since 2001. “I firmly believe that if we focus on what matters most: quality and safety, success will follow.”

Tom acknowledges that getting hops right is a full-time job. It’s never one thing, he says. Instead, it’s a combination of factors that lead to desirable hops, from the farm, to the harvest date, to the pelletizing, to the packaging, to brewing, to the bottling and finally to the delivery and pour.

“Naturally, we’re very pleased with our hops,” assured Tom, whose prestigious brews speak for themselves. “But we were interested in what you guys, Indie Hops, were saying about your new pellet design and the Willamette Valley terroir. We wanted to see if there were any differences from Washington grown Cascade pellets.”

The experiment went down like this. Macs brewed up three batches: two using Cascade pellets from two existing vendors, and one using Indie Hops’ 2009 Cascade Pellets. They chose their Amber Ale as the medium.

And, to evaluate how or whether the hops would perform under actual “battle field” conditions, they subjected the three batches to a “force test.” They exposed to the beers to the type of peak heat temperatures that would basically simulate a six pack getting locked inside the trunk of a car in August for a few days (not that any customer would do such a thing to Mac’s Amber Ale, or any good ale for that matter). The idea was to speed up the oxidation process that naturally occurs under predictable conditions.

In total, three test brews split between “fresh” and “forced” conditions. After evaluating the brews internally, Tom and Vasili invited Indie Hops over to wet our collective whistles and – and this is the sweaty palm part -- put our money where our mouth is. They didn’t tell us what was what, of course. They wanted our no BS feedback.

Oh Lord, please pick the right one!! Jim and Matt each blindly sampled and rated all three. Jim recalls the pucker factor. “First, I’m not a pro taster. And second, one of the samples didn’t taste so hot, but I couldn’t be harsh – what if it was ours? I’m confident, but I’m not dumb!”

How did it turn out? Did Jim and Matt agree on the winner? And who was the winning hop merchant? Indie Hops or our friends up North?

Well, let’s just say that it’s better to be good than lucky. We’re thankful to Tom and Vasili and all the guys and gals at MacTarnahan for putting our theories to the test. Feedback is great, but validation is awesome!

With a proven winner like Mac’s Amber Ale, is it possible to increase expectations? We think so. In the war against mediocre beers, there’s no room for complacency.

Roger Worthington
11/2/10

The Home Hop Press Experiment

Instant Karma's gonna get you,
Gonna knock you right on the head…
--John Lennon

Got whimsical and did something stupid. Didn’t start out being stupid, but got there quick enough.

Keep thinking about tea bags and coffee beans and how the use of those consumer staples might cross over to brewing beer. Tea drinkers know the pleasure of squeezing out the last burst of flavor (love that burst of ink).

Miserly coffee drinkers like me hate automatic espresso machines because they don’t allow the user to hit that puck one final time to strain out that last bit of resinous flavor. I don’t like tossing oily pucks into the garbage.

In my quest to extract hop flavor, I conducted an experiment in my kitchen. I filled a 14 oz French coffee press with a small handful of US Fuggle whole cones. Slowly poured in about 6 ounces of Fat Tire – real slowly since on contact the beer exploded into a thick, resolute column of foam.

The goal was to press the screen down flat against the cones on the bottom. The problem was the plunger on my coffee press didn’t reach the base, leaving about a 1-1.5 inch gap. Had plenty of beer contact with the hops but couldn’t get that one last muscular push.

The lightly squeezed hop-infused Fat Tire didn't live up to it's name – it went from fat to flat. It’s like the cones sucked out the alcohol, CO2, malt and flavor, leaving a thin, attenuated and insipid brew that gave off the aroma of wet grass.

On the other hand, I took comfort in knowing my hoppinated beverage was loaded with fresh anti-microbials, anti-fungals and anti-stomach bugs. Plus a heavy dose of xanthohumol and quercetin. Plus with all those cannibaccea-related sedatives I did wind up sleeping like a baby buddha.

Back to the drawing board. Note to self: not so sure that dropping whole cones into a pint will add much (beyond the aforementioned pharmaceutical stuff) . Fun, and romantic, and certainly a boon to consumer hop education, but not sure it adds anything zesty in the way of flavor. Might even screw up the original flavor.

Second note to self: hop oils are generally hydrophobic. The myrcene in Fuggles is 46%. Im seriously doubting the lupulin glans will easily give up their precious oils during a 60 second dunking. I suspect most beer lovers want to put that foamy brew to their lips within about 10 seconds of the pour.

I have heard tales of brewers, inspired by the coffee press model, attempting to renovate their fermentation tanks during dry hopping to achieve a similar process. I’ve asked around and so far, nobody’s owned up to it. The idea would be to lower a screen into the tank and press the hops (whole cone or fat pellets) and squeeze out the oil. Of course this may also squeeze out tannins and acids and other undrinkable compounds.

It would have to be engineered just right – a removable top, a tight plunger that could easily lower, and a base that would still allow for the fresh squeezed hoppy beer to flow through the bottom.

If anyone has any ideas, let me know. To work, we’ll need time, money and crack engineers. Hop Karma doesn’t come instantly.

Roger Worthington
10/27/10

The Organic Hop Shuffle

By now I’m sure you’ve heard about changes afoot in the rules regarding the use of hops in certified organic beer. A committee that oversees such things recently voted 6-0 in favor of recommending the removal of hops from the list of organic-exempt ingredients. If adopted, and it likely will be, the rule would not take effect until January 1, 2013.

What does this mean? It means that farmers have two seasons within which to begin planting organic crops. It also means that brewers who wish to brew organic beers have time to both contract with growers for particular varieties and, if necessary, begin contemplating suitable substitutions.

The Fed Panel acknowledged that the transition wouldn’t be easy as pie. That’s why it didn’t recommend that the rule change be enacted immediately. In setting forth their “roadmap” for a smooth transition, the panel envisioned that if a brewer had a need for a variety that was not commercially available, it could petition to put that specific cultivar on the organic-exempts ingredients list.

The Panel made it clear that brewers need to establish (if they haven’t already) a solid relationship with their local accrediting agency on issues relating to the form, quality, and content of available varieties. Likewise, growers and merchants will need to educate their local ACA on the varieties they have available, and be prepared to address form, quality and quantity issues.

If you’re already set with organic hops, the rule changes won’t affect you that much, aside from helping bring the price down by encouraging more US hop farmers and merchants to go organic. If you’re currently sporting the USDA organics label, but not using organically grown hops, the change may strike you as an irksome roadblock that forces you to weigh the merits of plotting a new, more authentic course or scrapping the organics trip altogether.

At Indie Hops, we’re here to help you get you on the right track. Since 2009, we have committed to growing 20 acres of organic hops at Goschie Farms. We’ve got about 11 acres in the ground (9.4 acres of Cascade and 1.4 acres of Centennial) and our first certified organic crop will be available in 2012. We’re planning to plant the remaining 10 acres this Spring.

If you’re currently using Cascade or Centennial, or wish to substitute them in, we’d of course love to be your supplier. If you prefer other varieties, please let us know. Your feedback will help us decide what varieties to plant this Spring.

We have a flexible, sustainable and transparent pricing program we’d like to discuss with you. Our goal is to get it right at the farm level so that eventually the yields will go up and the prices will come down, and you’ll be motivated to go full green.

As a wiser man once said: Change is real and reality changes. We’re here to help you adjust to a new and we hope better reality.

Roger, Jim and Matt

For more information on the recommended removal of hops from the National List, please click on these articles:

National Organic Standards Board Handling Committee Response to Petition to remove Hops (Humulus luplus) from § 205.606 Revised Committee Decision Discussion. October 8, 2010 (click here)

'Growers near win in battle to mandate organic hops in organic beer' The Portland Oregonian. Click here

Click here to read about Indie Hops Organics Program

Up and Comer Noah Regnery Reaches the Top and Beyond in Break-Out Year for Pizza Port

San Clemente, CA. Six years ago Noah Regnery was washing dishes at the Pizza Port in Solana Beach. Today, he’s brewing Gold Medal winning IPAs at the Pizza Port in San Clemente

Noah’s also the 2010 GABF Small Brewpub Brewer of the Year. But you wouldn’t know that sitting at the bar. No placards. No framed trophy shots. Not even a grease pencil shout-out on the dry-erase board. In fact, when I brought up the golden moment, the startled customers at the bar erupted in jubilation. They knew they were in the presence of greatness, but they didn’t know just how great.

“Really!?!” shouted Sherries, a dedicated local with a winning tan and smile to match, reaching out to an aw-shucksy Noah for a high five. “That’s awesome!”

Noah beamed. Two Golds in two of the toughest categories. He said he still gets shaky thinking about the awards show, showing me his trembling fingers. “A total shot in the dark,” the 27 year old brew hipster and prodigy said. “I had zero expectation. I mean, Man, I was going up against these legends…giants… like Matt Brynildson. His Union Jack just rocks. And Vinnie, with his Blind Pig. And Ballast Point… I’m like this kid who just stumbled in, dazed and confused, just happy to be there.”

“I mean, I liked my beer. Jeff [Bagby, his boss] liked it,” recalled Noah, talking about his “Pseudo” IPA, which was his invention, and his Doheny Double IPA, which he inherited at the San Clemente pub when he took the head brewer job there four years ago. “But sometimes I wondered whether I knew what I was doing. Winning the gold medals told me I must be doing something right.”

Noah credits Jeff Bagby for his rapid rise to success (in 2009 Noah won the Gold for his Oatmeal Stout). “Jeff’s an awesome mentor. He gives me the freedom to experiment and he’s always there to answer questions and offer support,” said Noah, who’s been the head brewer at the San Clemente pub the last three years. “I’m stoked to work here. Not to take anything away from the bigger brewers, but I like the intimacy in a small pub, where I get direct feedback from my customers” – a quote that met with thunderous applause from his adoring self-styled “peanut gallery.”

What’s next for the 27 year old Small Brewpub Brewer of the Year? “Right now I’m just focused on my customers,” forlornly noting that due to size limitations (a 15 bbl system) he hasn’t been able to quench the thirst of his faithful flock who’ve been patiently waiting for his Pseudo and Doheny Double IPAs the last few weeks.

Pizza Port San Clemente doesn’t bottle and doesn’t intend to in the foreseeable future, which doesn’t seem to bother Noah a bit. Noah uses about 5 pounds of hop pellets per barrel in his IPAs. In the past three years he’s seen his volume increase from 400 barrels in 2007 to 700 barrels in 2009. This year he anticipates 800 barrels and is about maxed out.

What’s Noah looking for in hops? Like most, he never thought much about how or whether the design of a pellet influences the flavor and aroma. Like most, when ordering, he never specified the size of a pellet, nor the grind. Like most, he assumed that pellets were pellets and his suppliers must know what they’re doing. I brought a few pellets from our 2009 Oregon Goldings supply and Noah trotted out the same variety from his supplier and we did the “plop plop fizz fizz test,” dropping an equal amount in cups of hot water and room temperature.

On contact, our hops floated and expanded before settling, while the others dropped to the bottom much faster, where the tiny hop particles quickly formed a silt bank. After watching the pellets behave in their respective cups, I asked our champion for his candid, unvarnished opinions.

“If you were charged with designing a pellet, for either the boil or dry hopping, how would you do it?”

“I’d do it like that,” Noah said without hesitation, pointing to the cup of Indie Hops’ blooming green tea. There was nothing “dazed or confused” about that answer.

“Next question. Take a whiff from each. What pellets would you prefer?”

“I want that,” Noah intoned, as in a trance, again pointing to the IH concoction.

Since the peanut gallery was engrossed in the testing, we passed around the hop teas for their sensory review. “Wow” was the consensus. “Yours have a pleasant, hoppy aroma. The other’s flat.”

Can a gold medal winning brew get better? We think so.

Congratulations to Noah and Pizza Port, which, when you factor in the Carlsbad pub brewery, racked up a jaw dropping 9 medals at the 2010 GABF. Noah’s real-deal “Pseudo” IPA will be tapped, if all goes well, in about two weeks (artistic creation doesn’t obey deadlines). Mark your calendar and get there early and stay late – I’ve got a feeling Noah’s fan club is about to break out.

Roger Worthington
10/4/10