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Russian brewers ask for help replacing imported hops -Kommersant -Breaking

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© Reuters. FILEPHOTO: A shop in Moscow has boxes containing bottles of beer. June 22, 2018. REUTERS/Maria Kiselyova

(Reuters) – Russian brewers asked the ministry of agriculture to assist them in finding ways to substitute imported hops within the next few year, as they are worried about shortages. This was reported by the Kommersant newspaper on Friday.

Hops are an essential flavouring ingredient and Russian-owned brewers import 98% of the 7,000–7,500 tonnes they use every year, mainly from Germany, the Czech Republic and the United States.

Russia’s domestic brewers might also see higher demand because European counterparts Carlsberg (OTC) and Heineken(OTC) announced plans for exiting the Russian market.

Kommersant was able to see a letter from the Russian Union of Brewers, which stated that while most Russian-owned companies had sufficient hops for a few months, they would face serious difficulties in summer if there were no supplies.

The union demanded that the government support local production. However, this process could take some time.

The Association of Russian Hops Producers estimated that the country would require more than 500 million rubles ($6.4 million) per year in state subsidies over three years to boost production to 1,000 tons by 2030.

($1 = 78.0330 roubles)

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