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The beer manufacturer Varvar plans to launch its own cultivation and processing of hops

03 Dec, 2023
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The beer manufacturer Varvar plans to launch its own cultivation and processing of hops

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The brand plans to expand in Ukraine, although competing with foreign beer producers is challenging without support and financial market stability. The manufacturer is willing to collaborate with international investors, but they are awaiting a more stable situation in the country.

Vasiliy Mikulin, the founder of the Varvar brand, shared this information. 'We are ready to collaborate with international investors and would like to open a hop production facility. Ukraine once had its place in the history of hop production. There are regions suitable for hop cultivation, such as Zhytomyr and Vinnytsia regions. Investors are currently waiting for some positive signals, and when the situation becomes more stable,' Mikulin noted during the New Food Summit 2023 conference.

While the Varvar brand participates in international festivals and events, it aims to focus more on development within Ukraine.

"Even before the war, we formed the Union of Small Brewers and compiled a report on the working conditions of brewers in Europe and Ukraine. We proposed to the deputies to bring us to similar conditions. However, this has not happened yet. Therefore, our entire community survives thanks to its internal resources. There is no financial market, no support. On the shelves, we compete with foreign products, and these manufacturers have preferences over us because they have subsidies, funding, and incentives for export programs. In other words, they receive support from their governments," believes Vasiliy Mikulin.

 

 

The foundation of the Ukrainian economy is small and medium-sized businesses, and it should be supported and developed.

"Until 2022, we collaborated with brewers in Europe. After February, we paused for several months. European brewers in Belgium, England, and Sweden took our beer, and we created numerous collaborations. However, in the last month, we faced three inspections demanding reports that would cost more than the revenue generated in the initial months of the war," shares the founder of the Varvar brand.

Unfazed by competition, the brand embraces innovation, utilizing state-of-the-art equipment and technologies.

"Additionally, we conduct in-depth analyses, documenting margins and errors," says Vasilii Mikulin. "Ten years ago, I founded a brewery in London, and it quickly reached 94% capacity. However, managing a company from 3,000 km away is challenging. We hoped that local professionals would align with our vision and standards. Unfortunately, our level proved too high for local brewers and managers, and after 2.5 years, we had to sell it," said Vasiliy Mikulin.

The Odessa Journal

The Odessa Journal

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