Nottingham’s booming craft beer industry is preparing for a price hike as the cost of hops soars.
The ingredient is commonly imported from the US – where prices of hops have increased by up to 60 per cent – and where many forms used to make craft beer originate from.
And demand for American hops has risen in recent years as the popularity of craft beer continues to grow worldwide.
But supplies of varieties commonly used in craft beer – such as Cascade and Simcoe – have not grown to meet demand, which in turn has pushed up prices for British brewers.
There are fears the higher costs of key ingredients could put pressure on British brewers – and even push some UK craft beer makers out of business.
Nottingham specialist craft beer bottle shop, Brew Cavern, in Flying Horse Walk, stocks a range of local, national & international craft beers – some of which are imported from across Europe and America.
Shop owner Matt Hinton said: “The price hike will impact the brewers first – and if the brewers get battered they will most likely pass the cost onto us.
“Some brewers will take the cost hit so we don’t have to – but some will pass it on.
“It’s difficult to know by how much or what the full effect will be until several months down the line.”
But according to Matt, the industry is already experiencing difficulties due to economic uncertainty following the EU referendum.
He said: “Beer prices fluctuate all the time – Brexit and the weaker pound are just some of the factors which have caused market nervousness.
“The prices may have gone up now – but they could go back down again soon.
“All you can do is make sure your business works around it, keep an eye out and be prepared.”
Nottingham’s Black Iris Brewery, based in Shipstone Street, imports 60 to 70 percent of its hops from the US.
Brewery director Alex Wilson said: “The price increase will affect us slightly more than traditional brewers as all of our hops come from America, Australia and New Zealand – who are also affected.
“As producers we’ve already seen some prices go up following Brexit – but hops could also become cheaper again if we get a good trade deal with the U.S.
“As a business you have to be prepared and take things as they come.”
However, Alex does not think the price increase will deter craft beer customers.
He said: “The popularity of craft beer has increased over the last couple of years and there are not many city centre pubs that don’t stock it now.
“The price increase won’t bother customers and people interested in pursuing craft beer will buy it regardless of the price.
“The craft beer market is moving towards the fine wine market – people want good taste and quality and will pay what the market dictates.”