Beyond the borders of Nelson: The opportunity for growth of the New Zealand hop industry.

Executive Summary

To investigate the key dynamics influencing the New Zealand hop industry and understand the key drivers encouraging growth within the sector
To understand the key growing requirements for hops and determine if opportunity exists for hop production in alternative regions to Nelson, New Zealand To seek a balanced point of view a multi-faceted approach was taken including
Reviewing national and global literature on hop production, marketing and selling methods
Undertaking a higher-level overview of the global craft beer market and more in-depth review of the US craft beer market to appreciate the drivers of hop demand
Informal discussions and in person meetings with various people from within and around the New Zealand hop industry to determine the dynamics of the market, approaches to selling product and how they aim to maximise returns for New Zealand hop growers
Speaking with local and international brewers to understand market dynamics, and key decisions around sourcing hops when determining a ‘brew’.
Review and present a case study on a soon to be released market investment opportunity to understand the capital requirements and forecast returns for this investment

The key findings from the report show:

The global craft beer dynamics will support continued growth of the New Zealand hop sector
Hops can grow in other regions of New Zealand with some regions exhibiting remarkably similar growing conditions to the larger international hop growing areas of Yakima in Washington State and Hallertau in Germany
New Zealand grown hops have several redeeming features to make them more attractive to brewers such as their aroma and flavour profiles unique to New Zealand
Capital cost of entry is considerable
Forecast returns support continued investment in this sector

The conclusions and recommendations in this report are targeted at any party wanting a greater understanding of the New Zealand hop sector.