Changing Landscape

For Paul Corbett, managing director of Charles Faram, the contracting situation is one that has developed significantly in the 26 years he has worked in the field, and echoes many of Willetts’ sentiments.

“When I started in this industry only the big breweries contracted and stock was generally available. But over time, we started to work with breweries on an estimated requirement scheme and in more recent years, as it’s grown, volumes have grown larger, too,” he explains.

“Then we were only dealing with 15-20 breweries but these days we are contracting millions of pounds worth. But now, smaller breweries want us to hold on to it, as well as wanting popular varieties such as Citra, Centennial and Simcoe.”

What is easy to forget, explains Corbett, is the cost this places on the merchant. “It’s a cost to us, with storage proving expensive and also, we pay our growers by February for their September crop.”

He adds: “People are reserving them so we have to contract. We are dealing with a significant number of breweries and many, many hops. Of course, growers do have problems occasionally too and there are clauses in our contracts with them so for any reason in the year, if a crop can’t be fulfilled, then there is no liability for the grower.

“It’s a long-term thing, and you simply can’t turn the tap on. But it’s important to understand that contracts give us visibility and allows us to plant the right thing. We can see the problems of knowing what recipes will be best sellers in a few years time but we have to start somewhere.”