Hops Crisis

There are not enough hops for all the small craft brewers. Beer is going up in price.

The shortage -- caused by a dwindling number of hop growers worldwide, and exacerbated by a Yakima, Washington, warehouse fire -- has forced Gortemiller to use fewer and different hops than before, changing the flavor of his beer. He's also resorted to beer hacks, like "dry hopping," in which the hops are added late to the mix, consuming fewer hops and yielding a more consistent flavor.

"When hops were $2 a pound, compared to $20 or $30 a pound now, it didn't matter. We'd throw them into the boil at various times," Gortemiller says. "That was an inaccurate way of doing things. We're modifying recipes and using about 20 percent less hops."

The beer-brewing situation demonstrates how the global-commodity shortage is spilling over to affect diverse industries in unexpected ways. The hop shortage lives on the outer edges of a food crisis that's prompted riots across the planet, and last month led U.N. Secretary-General Ban-Ki Moon to implore the world's governments to increase food production to stave off a 40 percent jump in the cost of staples.

Fortunately Sierra Nevada has long term hops contracts in place.

Ken Grossman, the head brewer at Sierra Nevada Brewing Company in Chico, California, says he's not tinkering with his brand-name recipes, such as his Pale Ale. He has long-term contracts in place to purchase his hops of choice.

He's paying more for barley, though -- the price has jumped because of a drought in Australia, flooding in Europe and a trend that has farmers worldwide switching to corn to produce biofuels.