The Future of Beer Wall Street Journal Presentation Patrick Olds Drew Richards Jordan Rowsey Lee Saunders.

The Future of BeerWall Street Journal Presentation

Patrick OldsDrew RichardsJordan RowseyLee Saunders

Hops: What they are

Beer is made of three main ingredients: Water, Barley, and Hops.

Hops add flavor and aroma More hops in a beer makes the beer

more bitter and bolder.

Hops are primarily grown: Hallertau region

of Germany

Willamette and Yakima valleys in the United States.

Shortage of Hops 10,000 acres of hops world-wide were

lost this past year Poor weather conditions Growing demand in Asia Reduced acreage due to real-estate

development

Shortage on hops caused an increase of price Price per pound went from $3-$5/lb to

around $20-$40/lb Smaller, independent breweries were

forced to raise retail prices Sierra Nevada raised price of 6 packs by

50 to 60 cents

Along with the shortage of hops, there is increase in demand for them Bolder beer styles have become more

popular recently In the past year, 47 of the top 50 brewing

companies have grown in production to keep up with demand

Brewers – what they are doing

Brewers are resistant to reducing products containing hops

Recipe changes is one alternative

Substituting hops is effective in conserving hops with greater demand

The bitter hops are easier to substitute than the aroma hops

Some “hoppier” beers are only produced in limited quantities because of the price of hops

Companies are creating new beers, which rely less on hops

Chocolate-OatmealStout

In review…

The future of beer seems pretty secure Though hops are lacking, industry

continues to grow 8,500 acres of hops planted in U.S. 11,000 acres worldwide

Hops planted are bitter hops Don’t reach full maturity for 3 years Don’t do as much to give unique taste

Altered recipes Less diversity in styles

“Things are predicted to get a little better … but it’s definitely not in the clear.”

--Mr. Koch of Stone Brewing Co.