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Russia beer market: Production declines -4% in 2012
Russia Beer Market Insights 2013 - a new market research report on 2014-04-22 02:53:01
In 2012, consumption in the Russia beer market continued to stagnate (with a slight decline). Meanwhile, production of beer in Russia reduced by almost 4% compared to the previous year

The decline in consumption was caused by pressure of a hostile regulatory environment and further increase of the excise tax burden. The reduction in brewing production was due to pre stocking by leading retail networks and wholesalers because of expectations of an increase in excise tax.

There were restrictions imposed on sales of beer during night hours and via small-sized retail outlets with retail area less than 50 sqm, which includes kiosks and street pavilions. In recent years kiosks were selling over 20% of off-premise volume of beer and even partial restriction of sales of beer in the second half of 2012 impacted negatively on overall beer consumption for the year

For 2012, stagnation of beer consumption was accompanied in Russia by gradual migration of low and medium-income consumers from low alcohol content beverages (including beer and wine) to spirits, which boosted production of vodka (by 13%) and other strong spirits (by 20%).

Overall consumption of imported beer brands in 2012 increased by 26%, driven mainly by a significant increase of shipments of beer brands from Belarus, with Krinitsa and Alivaria brands in the lead

The current legislation and expected legislation is forecast to lead to declines of 2013 and potentially double-digit decline in 2014.

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