Back in 2010, there were high hopes in Colorado that locally grown hops, the plant that gives beer a bitter or citrusy flavor, would help feed the then booming craft beer market. In just six years, the industry sprouted from almost nothing to 200 acres, according to the trade association
Inside the chilled storage room at the 22nd largest craft brewery in the country 鈥� Odell Brewing Company in Fort Collins, Colorado 鈥� brewer and agronomist Scott Dorsch pulled down a large box with the words 鈥渨hole leaf hops鈥� printed on the front. He ripped open the silver packaging to reveal a mound of flattened, dried green hops, crisp and airy like dried leaves.
Colorado. That鈥檚 because a large company like Odell requires a more reliable source. When they have bought local hops in past, it鈥檚 only to make a seasonal, limited-distribution beer.
鈥淲e would buy more hops than what Colorado could produce,鈥� he said.
Hops may not have panned out to be the major crop that some farmers had bet on. And Dorsch said the green rush all began with one well-known company.
鈥淚f it hadn鈥檛 been for Coors I don鈥檛 think there would have been 200 acres of hops growing in Colorado,鈥� he said. 鈥淚 think that people would have given up a long time ago.鈥�
Going big
With the largest single brewery facility in the world, the Coors Brewing Company operates out of Golden, Colorado. A company they own, called AC Golden, wanted to jumpstart the local hop industry for their beer, 鈥淐olorado Native,鈥� which uses only local ingredients.
Starting in 2010, AC Golden officials said they paid farmers a premium price for their crop in an effort to help get them established. Farmers reported being paid up to $15 a pound, far above the going market price at the time of around $4.
There鈥檚 a high startup cost to growing hops. The vines require trellises, which cost anywhere from $10,000 to $20,000 an acre to install.
Ron Yovich, was one of about a dozen farmers growing hops for Coors. Like most, he was a small first-time farmer and that premium price allowed him to purchase expensive harvesting equipment from Europe.
鈥淎t that point, (Coors) had a significant role in basically keeping us afloat for the first few years,鈥� he said.
The premium price allowed Yovich, as well as other farmers interviewed for this story, to make a return on the investments. But it wouldn鈥檛 last.
The slowdown
Between 2010 and 2015, the market for craft beer was booming (see graphic below).
In 2016, it started slowing down as wine and spirits took a larger share of the market, according to Bart Watson, an economist with the Brewers Association, a national trade association. He said while the craft beer market is still growing, it鈥檚 just less so because consumers have far more options.
鈥淭here鈥檚 a lot of competitiveness out there. It鈥檚 hard to get on, in shelvesets and get tap handles,鈥� he said.
This is in part, he said, why the hop industry in Colorado still hasn鈥檛 reached the scale that Coors and some farmers had bet on.
鈥淲e may see the hop industry scale back in places like Colorado simply because they were building for a future that was bigger than what we鈥檝e actually seen,鈥� he said.
The Pacific Northwest is the nation鈥檚 major supplier of hops, especially Washington鈥檚 Yakima Valley, which produces more than 39,000 aces, or 71 percent of the nation鈥檚 hops. Idaho and Oregon are the next largest and together three these states pushed the U.S. to its
Colorado鈥檚 crop acreage is 7th in the country, and hasn鈥檛 grown since 2016. And small hop industries in Indiana, Illinois, Nebraska and Iowa have seen little to no growth in the last few years. Only Michigan and New York have remained competitive at a time when experts say the specialty .
Finding a new market 鈥� or crop
Demand for local hops may lie with microbreweries, which are still doing well despite the outlook for the rest of the craft beer market.
That鈥檚 where Yovich has placed his bets. He no longer grows for Coors, nor does he have to worry about finding a reliable buyer. Instead, he and his wife opened Mountain Cowboy Brewing Company in Frederick, Colorado, and most of his crop is used to make his beer.
鈥淵ou know the old adage, don鈥檛 put all your eggs in one basket, [that鈥檚] the way it is,鈥� he said.
Other hop farmers have left the industry altogether. Mark Riley owns several acres and grew for Coors starting in 2012, but says this year the company lowered their price to about $5.50 a pound. He said he could have kept things going, but the drop in price 鈥� along with the cost of labor and arrival of powdery mildew on his plants 鈥� told him it was time to throw in the towel.
鈥淵ou know when you tell people, oh, you鈥檝e lost your price, they鈥檙e like 鈥極h, that huge corporation, screwing the little guy,鈥� and that鈥檚 not how it was,鈥� he said.
He says from the Coors communicated from the beginning that the high prices wouldn鈥檛 last. The idea was that growers would eventually find more buyers elsewhere.
Riley recalled one year when he approached more than 100 local brewers to buy his hops, but managed to sell only a fraction at a reduced price. When it came to marketing he said, 鈥渨e don鈥檛 have that skill set.鈥�
鈥淲e were trying to sell to other brewers around the state, you know we thought a lot more might be interested in a Colorado product,鈥� he said.
For their part, AC Golden officials said they had to strike a balance between supporting farmers and being financially solvent. By their estimates, they overpaid farmers by about $3 million over the course of eight years, which they consider an investment in the local industry.
Other farmers who were interviewed are still growing and selling to Coors.
Riley鈥檚 ripped up his hop plants and moved on to something else that many farmers are hoping will become the next big crop in Colorado 鈥� and maybe across the United States: industrial hemp.
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