A new online ordering 'hoption' for commercial brewers in the USA | spot.ychhops.com

"This isn’t about the next five years; this is about the next 50 years, for three generations from now.”


YCH Impacts


Within YCH, we also know it is critical to invest in people and infrastructure to develop world class capabilities. Our manufacturing operations are located in Yakima Valley Washington, but we source hops from independent farms throughout Washington, Oregon and Idaho.This means the money generated from hop farming in the Pacific Northwest stays in the Pacific Northwest and is reinvested in the communities surrounding our farms and facilities. As a grower-owned company, we also know it is critical to maintain industry leading returns to growers and strong competitive wages with employee development opportunities. Our returns allow farms to reinvest in land, people, and infrastructure, and allow the industry to continue to grow while becoming more sustainable, reliable, and quality driven. For every pound of hops we sell, 78% is returned to the grower. Our second largest expense is employee wages and benefits, followed by operating costs for the energy and packaging materials required to process, store, and ship our hops.


Farmer Impacts


A key goal for Yakima Chief - Hopunion is to maintain the economic health of our growers and their employees, while simultaneously providing value to our brewing customers. Economic sustainability, social responsibility, and environmental stewardship are the pillars of our sustainability efforts.

In order to track economic impact on our farms, YCH conducts an annual cost survey as Yakima Chief has done since 2000. The data collected from this survey is used for several purposes. First, it provides the foundation for productive collaboration between our growers to better understand costs and focus on adjustments in individual business plans to increase operational efficiency. Second, it creates a metric that can be utilized to establish a baseline for sustainable pricing programs for key brewing customers wherein the contract price is adjusted to reflect annual changes in production costs. Thirdly, knowing annual growing costs helps support the calculation of capital requirements for expansion of infrastructure and quality improvements.

At YCH, grower reinvestment is synonymous with long-term sustainability. Steve Perrault, a grower-owner, said it best: “We aren’t making this investment with the short-term in mind; we are looking at long-term sustainability. We are committed to the brewers. This isn’t about the next five years; this is about the next 50 years, for three generations from now.”

Labor (incl payroll taxes)

30%

Insurance

4%

Depreciation

9%

Water & Taxes

3%

Chemicals

9%

Land Rent & Leases

3%

Supplies

7%

Licenses/Fees/Subscriptions

2%

Parts & Repair

6%

Utilities

2%

Fertilizer

6%

Custom Hire

1%

Fuel & Oil

6%

Legal & Accounting

1%

Interest

5%

Consulting Fees

1%

Management Fees

4%

Equipment Lease

1%

Brewer Impacts


YCH HOPS is proud to serve brewers of any size. From providing home brewers with one ounce of Cascade hops for their first batch of beer, to shipping containers full of hop extract to large international brewing corporations, our sales model is designed to accommodate all brewers. Our customers are divided by industry market segments as defined by the Brewers Association (BA), a not-for-profit trade association dedicated to promoting and protecting American craft brewers. Since 2008, YCH’s growth has been largely fueled by rising demand for hop-forward beers.The United States craft beer industry has grown at an annual rate of 17%, with the IPA style category growing 10-fold over this time. This has ignited a global trend toward more flavorful and heavily hopped beers that we expect to continue in upcoming years. YCH’s strength in sourcing and delivering highly aromatic US hop varieties has positioned us as a market leader in the supply of hops.

Prior to forming Yakima Chief - Hopunion, Yakima Chief largely focused on large global brewers while Hopunion was exclusively dedicated to craft and home brewers. In recent years however, both businesses became increasingly committed to serving the US craft market due to its growth and passion for quality and sustainability. Today, craft beer represents 75% of Yakima Chief – Hopunion’s sales volume. This creates a mutually dependent relationship between YCH and craft brewers. According to the Brewers Association, American craft breweries added 424,000 jobs and $55.7 billion to the US economy in 2014. To continue to help this movement thrive and benefit local communities nationwide, we are dedicated to sourcing sustainably produced hops and partnering with brewing customers who share our vision for stable long-term growth.