For several years now, the production of craft beer in Serbia has been gaining momentum and there are many who decide to start brewing this popular drink.
There are about 40 craft breweries on our market, and in the total production and sales on the domestic market, they cover a small percentage that does not exceed three percent. In addition to them, there are many home, non-commercial breweries, and thanks to all of them, beer lovers have the opportunity to enjoy a product different from that offered by industrial breweries – the flavors and aromas of citrus, strawberry, cucumber, caramel…
And just when this branch of the brewing industry gained momentum and when it seemed that more and more craft breweries would open and the market would expand – everything changed very quickly. Namely, the coronavirus pandemic affected almost all segments of life and work, and this was inevitably faced by large beer producers, as well as small ones. Consumption and sales of craft beer have dropped significantly, because for practically a year now, catering facilities have been operating at a much smaller capacity than usual, and there have been no festivals where craft breweries have presented themselves and introduced the market to their offer. Reduced demand has already closed several craft breweries, and since the pandemic is not subsiding, the number of craft breweries may fall further – and this is a problem faced by craft beer producers in Europe as well.
According to the president of the Association of Small Independent Breweries of Serbia, Dejan Smiljanic, craft breweries are facing big problems.
– According to our estimates, small craft breweries have experienced a drop between 80 and 90 percent and five or six of them have already been closed, and seven more have submitted a request to stop working and are in a dormant status – says Smiljanic. – Craft brewing is in its infancy in Serbia and most craft breweries were opened in 2018 and 2019 – and their business is very vulnerable, they are burdened with loans… In addition, it should be said that it is important for the public to be acquainted with the facts and differences that exist when it comes to the business of craft breweries in Serbia and in Europe. Namely, in Serbia, the raw material is twice as expensive and almost everything necessary for production is imported, while the final product is far cheaper than on the European market.
Since the situation is not good, the Association sent a proposal to the competent ministries to provide assistance in this area, but the talks did not go far.
– We suggested that, since nothing systematic has been done, we be provided with support according to the model that has been changed, and already twice, to hotels. That would be easy to do, because there is a register of craft scams with data on annual production. The help that small breweries would receive in that way would mean a lot for maintaining production and further work, and the amount that, according to that model, breweries would receive in total as support would be equal to the amount sent to only one hotel in Belgrade – says Smiljanic.
Although the demand and consumption of beer has decreased due to the coronavirus pandemic, there are also craft breweries that produce similar quantities of beer as before the pandemic, and that is the case in Novi Sad’s “Zbir”, which has been operating since 2015.
– The production capacity is 20,000 liters of beer per month and we managed to preserve a similar production volume as before the coronavirus pandemic – says Nenad Janic from the production of “Zbir”. – This is the result of constant investment in modernizing production, expanding the range of products, and we have turned to foreign markets. So now our beers, in addition to placement on the domestic market, are also on the markets of Great Britain, the Netherlands, China, and exports started last year.
– In craft breweries, directly, there are not many employees – about 300, but their business is important for those with whom it cooperates in the production and distribution chain, and thus the number of those who depend on their work increases significantly – says Dejan Smiljanic. – Craft breweries are also important because of the diversity of the offer, because in recent years, thanks to them, it is far different and richer, Kamatica reports.
