HOP PROJECT
LABELLED ‘SOCIAL ELITISM’
A new joint craft beer and
hop breeding programme
aimed at developing
unique super-premium
hops for exceptional
craft brewers for toptier
Hapi Research has partnered
with the Ministry
for Primary Industries to
deliver ‘Hapi – Brewing
Success’, a $13 million, seven
year Primary Growth Partnership
programme. A joint venture
between leading Wellington craft
brewer Garage Project and Nelson
hop farm Freestyle Farms, the
project is expected to grow as
more like-minded businesses and
research partners join the industry
wide efforts. However Union
spokesman Louis Houlbrooke
says the “decision to throw money
at research for top-tier beer markets
isn’t just wasteful corporation
welfare – it’s social elitism. At
the same time the Government
hammers ordinary beer drinkers
with excise tax, it’s giving millions
in handouts to upmarket producers.
Apparently beer is evil,
unless it’s being made for rich
people.” Houlbrooke says New
Zealand’s upmarket beer sector
is going through a boom phase
and is capable of funding its own
research. “A $5 million taxpayer
funded subsidy is just gravy on
top.” Freestyle Farms director David
Dunbar says the programme
will pursue research to enhance
and differentiate super-premium
hop and craft beer markets, and
boost growth of both industries.
Hop growing will be supported
by research on new precision
agriculture practices and processing
methods, and licensing
for the hops will be limited to New
Zealand growers. Garage Project
chief executive Tom Greally says
the programme intends to support
entry into new markets for New
Zealand craft brewers and enable
new grower and brewer business
models. “Through the programme,
we want to understand the unique
chemical compounds of our hops
that produce New Zealand flavours,
and how to best accentuate
them in finished beer.” MPI director
general Martyn Dunne says
the Hāpi – Brewing Success PGP
programme will create a cross-industry
research and development
programme that’s commercially
viable, sustainable in the longterm,
with strong commercialisation
pathways driven by the
market. “The collaborative efforts
will strongly support development
of high-value, premium products
from regional businesses. The
Hāpi – Brewing Success PGP
programme will help growers and
brewers to explore new possibilities
for our hop growing and craft
beer industries.” Hāpi Research
Ltd is contributing $7.95 million
(60%) and MPI is contributing
$5.3 million (40%) over the term
of the Hāpi – Brewing Success
Primary Growth Partnership (PGP)
programme. If successful, the programme
expects hop revenue to
grow to $132 million per annum by
2027, which is $89 million higher
than the revenue forecasted without
the programme. In addition,
the programme expects craft beer
revenue to grow to $98.5 million
per annum by 2027, which is $82
million higher than the revenue
forecasted without the programme.
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.
www.hapi.co.nz
markets has been
attacked by the New
Zealand Taxpayer’s
Union as being corporate
welfare for brewers.
/www.hapi.co.nz
