ALBUQUERQUE, N.M. (KRQE) – The beer is still flowing at 377 Brewery near Gibson and Yale in southeast Albuquerque, but it’s definitely costing more to make it. The owner, Cliff Sandoval, says the war in Ukraine has created a price hike for their beer since both Russia and Ukraine are two of the world’s top wheat and barley producers.

“We started noticing (higher prices) probably about a year ago, honestly. And then, I think, about 6 months we started really noticing 2 to 3 percent, but when the war started, 10 to 15 percent pretty quick,” Sandoval said.

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The brewery buys products, like hops, from all over Europe and says the pipeline is being affected. Sandoval says everything is more expensive and those prices could be passed on to the customer if things don’t change.

“We are understanding that everybody is in the same boat and trying to keep our prices where they are and trying to reconstruct our menuing from beer to food, to everything else, it’s a constant battle every week. Because from one week to the next, we don’t know what’s coming so we’re always having to move,” Sandoval said.

The 377 Brewery is not alone. Albuquerque’s Lizard Tail Brewing says they’re feeling the price hikes too. Grain has gone up about 12% for them and the malt they buy from Germany is also up 10%. They believe this is just the beginning. So for now, they’re buying in bulk.

Head Brewer, John Ruyak, describes their day-to-day as a balancing act to keep prices stable.

“How do we not pass that on to the consumer? And it’s really hard, we don’t want to do that. We have been able to hold the line so far, but not sure how much longer that can happen,” Ruyak said.