1. The Future of Beer Wall Street Journal Presentation  Patrick Olds  Drew Richards  Jordan Rowsey  Lee Saunders

2. Hops: What they are  Beer is made of three main ingredients: Water, Barley, and Hops.  Hops add flavor and aroma  More hops in a beer makes the beer more bitter and bolder.

3.  Hops are primarily grown: Hallertau region of Germany  Willamette and Yakima valleys in the United States.

4. Shortage of Hops  10,000 acres of hops world-wide were lost this past year Poor weather conditions Growing demand in Asia Reduced acreage due to real-estate development

5.  Shortage on hops caused an increase of price Price per pound went from $3-$5/lb to around $20-$40/lb Smaller, independent breweries were forced to raise retail prices Sierra Nevada raised price of 6 packs by 50 to 60 cents

6.  Along with the shortage of hops, there is increase in demand for them Bolder beer styles have become more popular recently In the past year, 47 of the top 50 brewing companies have grown in production to keep up with demand

7. Brewers – what they are doing  Brewers are resistant to reducing products containing hops  Recipe changes is one alternative

8.  Substituting hops is effective in conserving hops with greater demand  The bitter hops are easier to substitute than the aroma hops  Some “hoppier” beers are only produced in limited quantities because of the price of hops

9.  Companies are creating new beers, which rely less on hops  Chocolate-Oatmeal Stout

10. In review…  The future of beer seems pretty secure Though hops are lacking, industry continues to grow 8,500 acres of hops planted in U.S. 11,000 acres worldwide

11.  Hops planted are bitter hops Don’t reach full maturity for 3 years Don’t do as much to give unique taste  Altered recipes Less diversity in styles

12.  “Things are predicted to get a little better … but it’s definitely not in the clear.” --Mr. Koch of Stone Brewing Co.