Russian brewers ask ministry for help with hop shortage

Beer makers in Russia have asked the country’s agriculture ministry to boost domestic hop production as supplies expected to dry up by summer. 

With economic and trade sanctions still in place for Russia, the country’s brewers fear a shortage of hops and have asked their government to help them stay afloat, the Kommersant newspaper reported.

Most of Russia’s brewers have enough hops to last them for a few months, but are likely to face challenges by summer if supplies continue to be disrupted.

The problem is further exacerbated by the fact that domestic demand for Russian beers is expected to rise on the back of Carlsberg and Heineken announcing plans to exit the Russian market permanently in response to the war with Ukraine.

Carlsberg accounts for around 27% of the beer market in Russia through its ownership of the country’s biggest brewer Baltika, and the move is expected to have a substantial impact.

In a statement, Carlsberg said: “We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment. Upon completion we will have no presence in Russia.”

Heineken announced in March its plans to sell off its Russia business stating that it is “no longer sustainable nor viable in the current environment”.

Russian-owned brewers import around 98% of the hops they use every year, largely from Germany, the Czech Republic and the US. And with no signs of trade sanctions being eased, the country’s brewer’s union has reportedly asked the government to support increased local production of hops. However, becoming self-sufficient would take a considerable amount of time and offers no short-term solution.

The Association of Russian Hops Producers estimates that it would need more than 500 million roubles (US$6.4 million) in state subsidies for three to five years in order to boost hope production to 1,000 tonnes by 2030, the newspaper said.