Hops for procurement teams: contracts, spot buys and crop years
Hops are a small share of a beer's ingredient weight but can be one of its most expensive and supply-sensitive inputs. Procurement teams who understand crop years, alpha acids and contract terms buy better and avoid shortages.
What hops do and why brewers are fussy
Hops are the flowers of the hop plant. Brewers use them for bitterness, aroma and stability. Bitterness comes mainly from alpha acids, which change during the boil into bitter compounds. Aroma comes from hop oils, which are delicate and fade with heat and time.
Each variety has its own character. Brewers often cannot swap one for another without changing the beer. A brand built on a particular aroma variety depends on that variety being available every year. That is the root of most hop procurement decisions.
Where hops come from
Commercial hop growing in India is negligible, so Indian breweries import almost all their hops. The main producing regions include Germany, the Czech Republic, the US Pacific Northwest, the UK, Slovenia, New Zealand and Australia. Northern hemisphere hops are harvested around late August and September. Southern hemisphere hops are harvested around March and April.
Hops reach India mainly as pellets, packed in vacuum or nitrogen-flushed foil, plus extracts and specialty products. Our guide to sourcing malt and hops in India covers importers and logistics.
Crop years and variation
Each harvest is a crop year. Weather changes yield and quality from year to year. Alpha acid content for the same variety can vary noticeably between crops and even between lots from the same crop. A hot, dry season can cut yields and push prices up.
Brewers adjust recipes by alpha acid. If this year's lot has lower alpha acid, they need more kilograms to reach the same bitterness. That is why many hop contracts and price lists also refer to alpha acid. It is also why procurement and brewing must talk about the certificate of analysis for each lot, not only the variety name. The latest crop picture is covered in our hop harvest 2026 report.
Forward contracts
Large brewers and many craft brewers buy key varieties on forward contracts, agreeing volumes for one or more future crop years. Contracts secure supply of popular or scarce varieties and give growers the confidence to plant. Some run several years ahead.
The risks are mirror images. Contract too much and you may hold ageing hops or have to sell surplus at a loss if a brand underperforms. Contract too little and you may face shortages or high spot prices. Contracts may be priced per kilogram or tied to alpha acid, with terms on quality, delivery timing and what happens if the crop fails. Read them with the brewing team, who know how flexible each recipe really is.
Spot buys
The spot market covers hops bought as needed from merchants' uncontracted stock. Spot buying suits trial batches, seasonal beers and varieties used in small amounts. Prices and availability move with each crop. A popular aroma variety may be scarce on the spot market after a poor harvest, while a common bittering variety may be plentiful.
For an Indian buyer, spot purchases also involve import lead times, documentation and cold chain arrangements, so "spot" can still mean weeks before hops reach the brewery.
Storage and freshness
Hops lose alpha acids and aroma over time, faster when warm or exposed to oxygen. Pellets should be stored cold, ideally frozen or at least refrigerated, in sealed packs. A pallet of hops left in a hot customs shed or warehouse in Chennai or Mumbai in May will not be the same product when it reaches the brewery.
Procurement should agree storage requirements with importers and logistics providers. Check temperatures at each handover. Our guide to hop storage and freshness explains the chemistry.
Building a hop buying plan
- List every variety used, by brand, with annual kilograms and alpha acid basis.
- Mark which varieties are essential to a brand's character and which can be substituted.
- Contract the essential varieties forward, with a sensible buffer.
- Use spot buying for trials, seasonals and flexible bittering.
- Plan cold storage capacity for the stock you will hold.
- Review the plan after each harvest, when new crop quality and prices are known.
That plan only works when procurement understands what the brewers can and cannot change.
Common questions
Why do hop prices change every year?
Hops are a farm crop with one harvest a year. Weather affects yield and quality. Demand for popular varieties shifts, so prices move with each crop.
What is a hop forward contract?
An agreement to buy set volumes of a variety from future crop years. It secures supply but commits the brewery to volumes it may not need if plans change.
Why does alpha acid matter to procurement?
Bitterness depends on alpha acids, which vary by crop and lot. Lower alpha acid means more kilograms are needed for the same bitterness, which affects cost and volume.
