11 Oct 2018

Brewers hop on to opportunity to boost market gains

5:00 pm on 11 October 2018

Backers of a new $13 million hop breeding programme hope it will bolster exports by creating a signature style of New Zealand beer.

Hop cones for making beer and bread.

A joint venture, Hāpi Research Limited, is set to develop super-premium hops that support entry into new markets. Photo: 123rf

Wellington craft brewer Garage Project and Nelson-based hop grower Freestyle Farms are committing $7.95 million to the seven-year project.

The remaining $5.3m is being delivered by the Ministry for Primary Industries through its Primary Growth Partnership programme.

Garage Project co-founder Jos Ruffell said under the joint venture, Hāpi Research Limited, it wanted to develop super-premium hops that would support entry into new markets.

"We see the opportunity to develop some unique beers and have them almost be a signature style of New Zealand beer... and we see the opportunity to send these hops to some of the top craft breweries around the world and work with them collaboratively," he said.

Mr Ruffell said it wanted to develop the resources for domestic and export success along the lines of what New Zealand's wine industry had achieved.

By "elevating New Zealand craft beer to a sustainable global brand that commands premium pricing across all markets," he said.

The Ministry for Primary Industries said if successful, the programme was expected to grow hop revenue to $132m per annum by 2027, which is $89m more than was forecasted without the programme.

It said similar gains were expected for the craft brewing industry.

"The co-investors expect 835 new jobs to be created across the hop growing and craft brewing industries if the economic goals are achieved. A key aspect of the programme is that the intellectual property and expertise it develops will be retained in New Zealand," the ministry said.