AB-InBev: No hops for independent US craft brewers

Paranoia or what? US craft brewers are complaining that AB-InBev is keeping them away from purchasing coveted South African hops.

The company has owned a South African hop farm since it merged with SABMiller in 2016. But this year, instead of the hops going to independent brewers who previously purchased them, nearly the entire yield is going to AB-InBev-owned companies.

In May, AB-InBev released a statement, saying that the decision was based on a shortage of hops. There was no plan to shut out craft beer brewers.

SABMiller’s hop farm is a small affair. In a good year, the harvest yielded 850 tonnes, Brauwelt International was told. Due to bad weather, this year’s yield was down by 100 tonnes, we heard.

South African hops have enjoyed a bit of a cult following among craft brewers because they are unique, being grown in a location beyond the global hop belt. Usually hops are cultivated between 35 and 55 degrees latitude.

When SABMiller set up its hop farm the goal was to provide the brewer with bitter hops, which went into brewing the Castle beer brand across Africa. Originally, there was no emphasis on other types of hops as the primary purpose was self-sufficiency.

However, SABMiller’s breeding programme has produced excellent aroma and flavour hops, such as Southern Passion, African Queen (J17) and Southern Aroma, which were sought after by craft brewers on the lookout for unusual and exclusive hops.

In a letter to customers, Willy Buholzer, AB-InBev’s global hops procurement director, wrote that “this year, South Africa suffered from low yields. Previously, SAB has sold a small surplus of locally-grown hops to the market. Unfortunately this year we do not have enough to do so, given the poor yield.”

The company will still supply South African craft brewers with hops, according to the statement. This was part of deal between AB-InBev and South Africa’s antitrust authorities in order for the merger with SABMiller to go through.

What brought US craft brewers up in arms and caused ill blood was AB-InBev’s decision to send some South African hops to the US, but exclusively to the craft breweries it owns.