The Value of Vertical Integration: Origin Malting & Brewing

The Value of Vertical Integration: Origin Malting & Brewing

In Alberta, Canada, where some of the world’s best malting barley is grown, the 2024 harvest has just begun. The weather conditions have not been ideal this year, resulting in a crop that is less than perfect. However, this is still an improvement compared to previous years such as 2021, which was a challenging year for many grain farmers. Despite these challenges, Sterling Hilton, president of Origin Malting & Brewing Co., remains optimistic about the situation.

A Family Legacy

Sterling Hilton comes from a long line of farmers, with his family farming 17,000 acres of land in southern Alberta. The Hilton family farm is known for supplying malting barley to global malting companies that cater to breweries worldwide. However, in 2017, the Hilton family made a significant decision to vertically integrate their operations and create value-added products. This led to the establishment of Origin Malting & Brewing, making them one of the few breweries in North America that grows, malts, and brews their own barley.

The decision to vertically integrate their operations allowed the Hilton family to have a direct connection with their end users. Previously, they used to sell their malting barley to a marketing company without any visibility on the final product. However, with the dissolution of the marketing company, the Hiltons were able to engage directly with craft breweries that used their barley in beer production. This newfound connection with their customers brought a new level of appreciation for their product.

Community Engagement in Strathmore

Origin Malting & Brewing found its home in Strathmore, an agricultural town that celebrates its farming roots. The move to Strathmore allowed the Hilton family to be actively involved in a community that values agriculture and to face their customers directly. This close interaction with the local community and craft breweries has been a rewarding experience for the Hilton family, engaging more members in the agricultural operation.

In addition to their core line-up of beers, Origin also offers seasonal brews made from Hilton-grown and Origin-malted barley. They supply malt to around 40 other craft breweries, enabling these breweries to highlight their support for local agriculture and provide traceability to their ingredients. Origin’s commitment to promoting the connection between beer production and the land is evident in their tagline, “We grow beer,” which encapsulates their grain-to-glass story.

Industry Trends

Origin Malting & Brewing is part of a growing trend in the industry where breweries are looking to source ingredients locally and highlight the farm-to-table aspect of their products. Breweries like Colorado Farm Brewery in Alamosa, Colorado, and Locality Brewing in Langley, British Columbia, are examples of this trend, where barley is grown, malted, and brewed on-site. This trend towards self-sufficiency and traceability is reshaping the craft beer industry.

Overall, Origin Malting & Brewing’s story is a testament to the value of vertical integration in the agricultural and brewing sectors. By bringing together the farming, malting, and brewing processes under one roof, Origin has managed to create a unique selling proposition that resonates with consumers looking for authenticity and a connection to the land. The Hilton family’s dedication to their craft and their community is a shining example of how vertical integration can lead to a more sustainable and rewarding business model in the agricultural sector.

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