Refinitiv Newscasts - Russian brewers hunt for hops as imports run short

Laboratory of America Holdings

13/09/2022 16:07

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_g3xld312&referenceId=tag:reuters.com,2022:newsml_OV499913092022RP1_930&pageId=RefinitivNewscasts
Source: Reuters

Description: Restrictions against Russia have disrupted local beer brewers'
supplies of hops and equipment, forcing them to seek domestic alternatives as
they strive to keep their range of beers flowing, three brewing companies told
Reuters. Julian Satterthwaite reports.
Short Link: https://refini.tv/3BBxTjG

Video Transcript:

Russian brewers face an opportunity and a challenge. Sanctions on the country
have seen most Western rivals depart. While that means a chance to grow
domestic sales, it's also creating problems with imported ingredients. Hops,
which give beer much of its flavor, are one big issue. Imports aren't banned
but sanctions on payment methods and snarled up logistics mean they're hard to
get. Khmelyoff is one Russian beer maker. Director Sergei Barinov says he's
trying to use hops from Russia's Chuvash region.

For the last 15 years, we have been buying hops from Germany, the whole amount
that we needed. This year, we tried hops from Chuvashia. We bought a small
amount to try it out. Generally, we are pleased with the quality and we plan
to buy a larger amount this year here, in Chuvashia. That is why we came here.

Russia imports most of its hops from the US, Germany, and Czech Republic. Some
brewers say that the country can't produce the variety needed for more
sophisticated beers. One told Reuters it would take years to develop all the
necessary types. For now, though, many firms are enjoying the opportunity left
by absent competitors. Vadim Deshyovkin is General Director at Afanasy Beer
Factory.

There used to be Heineken, Guinness, Belgium Leffe here, and all that was left
for us were two or three - as it's now trendy to say - "facings", positions on
the shop shelf. Now our direct competitors have left and there is more shelf
space for us, and the consumers are already turning their attention to our
product. 

Overall production certainly doesn't seem to have suffered. Official statistic
show Russian beer production rose almost 3% over the first half of the year