Beer (Russian market)

The main articles are:

• Beer (global market)
• Alcoholic beverages (Russian market)

2024

Beer production in Russia reached a maximum in 11 years

Beer production in Russia in the first half of 2024 amounted to 451 thousand decaliters and, thus, increased to a maximum in 11 years. This is evidenced by Rosstat data.

According to the department's materials, in January - June 2024, beer production in the Russian Federation increased by 7.3% compared to the same period in 2023. June 2024 became a record month for product production: production reached 88.2 thousand decaliters. This is more than the figure a month earlier, by 1.8%, and a year earlier - by 6.9%.

Beer brewed in the Russian Federation accounts for 95% of the Russian market

In 2024, in the Russian beer market, the share of products brewed in Russia accounts for more than 95% of total sales. This was announced in August 2024 by the executive director of the Association of Beer Producers Vyacheslav Mamontov, emphasizing that domestic brewing companies successfully compete with imported producers, satisfying all the needs of the Russian market.

According to NielsenIQ, the share of foreign beer in the sales structure in Russia since May 2023 has increased from 5.5% to 6.8%, which in physical terms is an increase of 28%. Beer imports to Russia in 2024 also increased by 18%, according to information provided by the Center for the Development of Advanced Technologies (CRPT), which manages the Honest Sign labeling system. However, despite this, Russian manufacturers remain dominant in the market, occupying the vast majority of the segment.

Beer brewed in the Russian Federation occupies 95% of the Russian market

Vyacheslav Mamontov noted that the main problem for the domestic brewing industry remains the import of beer products into the country without the permission of copyright holders. Mamontov believes that this has a negative impact on the market, leading to a decrease in production volumes, a reduction in jobs and a decrease in tax deductions.

According to the position of the head of the Association of Beer Producers, in order to protect the domestic market, it is necessary to strengthen control over imported products and increase the competitiveness of Russian producers. Vyacheslav Mamontov also supported the initiative to increase import duties on beer products from the so-called "unfriendly countries." As of August 2024, this duty is €0.1 per liter, however, according to representatives of the United Breweries holding, by the end of 2024 it should be increased to €1 per liter, and in 2025 - to €1.5 per liter.^[1]

In the Kaliningrad region launched a plant for the production of malt for beer for 200 million rubles

In early May 2024, a plant for the production of malt for beer was launched in the Kaliningrad region. We are talking about the project of the company "Breeze." Read more here.

2023

Per capita beer consumption up 2% to 52.6 litres

In 2023, beer consumption per capita in Russia reached 52.6 liters, which is about 2% more than in the previous year. The volume of the industry in money is estimated at 1.23 trillion rubles. Such data at the end of June 2024 are disclosed by the Association of Beer, Malt and Beverage Producers, citing statistics from Rosalkogoltabakkontrol and Rosstat.

The study says that about a quarter of all beer consumption in the Russian Federation (190.6 million decaliters in 2023) falls on five regions, including Moscow and the Moscow region, Sverdlovsk region, Krasnodar Territory and Tyumen region. The leader in consumption growth in this five was the Krasnodar Territory, where beer sales rose by 4 million decaliters, or 15%, compared to 2022. Such a significant increase is explained by the increase in the flow of tourists.

The increase in the cost of a liter of beer in 2023, according to experts, amounted to approximately 5-6% with a final result of 162.4 rubles. Growth, as noted, turned out to be significantly lower than the inflation rate. Russians prefer light beer with a strength of up to 6.1%, while strong beer is chosen by no more than 10% of the total number of consumers.

In 2023, about a third (273 million decaliters) of the total volume of beer in the country was produced in the Moscow and Ulyanovsk regions, Tatarstan, as well as the Novosibirsk and Samara regions. Among the regions leading in terms of beer production growth are the Karachay-Cherkess Republic, the Republic of Dagestan and the Republic of Adygea, where the annual increase was 40%, 35% and 34%, respectively. This is explained by the "low base effect."

It is also said that the share of imported brands in the sales structure remains at the level of 4-5%. Large production capacities within Russia and low margins lead to the fact that the domestic beer market is almost completely complete without foreign products.^[2]

12.6% increase in beer imports

In 2023, 370.5 million liters of beer were imported into Russia, which is 12.6% more than a year earlier, but less than the indicators of 2020-2021. This was reported at the end of February 2024 by the Kommersant newspaper, citing data from market participants. Read more here.

Sales growth 2.1% to 769.6 million decalitres

Retail sales of beer in Russia in 2023 reached 769.6 million decaliters, which is 2.1% more than a year earlier. This was reported in mid-February 2024 by the Association of Beer, Malt and Beverage Producers (APP), citing data from Rosalkogoltabakkontrol.

As noted in the APP, the volume of the Russian beer market in monetary terms in 2023 grew in about the same way as in kind (the amount of revenue is not specified). The growth is due to the gradual restoration of the purchasing power of the population, the association believes.

Retail sales of beer in Russia in 2023 reached 769.6 million decaliters

According to Rosstat, quoted by APP, the average cost of brewing products in December 2023 was only 0.9% higher than in December 2022, the average price for 2023 generally corresponded to the indicator of 2022.

Despite the fact that over the past few years, prices for raw materials and packaging have increased by about 30% on average and continue to grow, and the cost of producing brewing products has increased by more than 17%, brewers continue to make every effort to offer products at affordable prices for consumers, - said the executive director of APP Vyacheslav Mamontov

The APP also emphasizes that even with an increase in sales, the share of brewing products in the total structure of consumption of alcoholic beverages in 2023 decreased by 0.4 percentage points. - up to 38.1%.

Recently, we have seen a trend in which the consumption of strong alcohol is growing. Such a development scenario contradicts the dealcoholization strategy, according to which it is necessary to stimulate a shift in the consumption structure towards low-alcohol categories, - said Mamontov, adding that the brewing industry needs separate regulation and must develop separately.[3]

Mandatory digital labeling of beer and alcohol in aluminum cans has been launched in Russia

On January 15, 2024, a mandatory digital marking of beer and alcohol in aluminum cans was launched in Russia. This is provided for by the relevant decree of the government of the Russian Federation, which was previously signed by Prime Minister Mikhail Mishustin. Read more here.

The Federal Tax Service and the FSB revealed schemes for the shadow production of beer for 2 billion liters. This is more volumes of leading plants

The Federal Tax Service (FTS) and the Federal Security Service (FSB) have discovered two tax evasion schemes in Russia from the sale of beer. Illegal producers annually produce more than 2 billion liters of unaccounted beer, which exceeds the production volumes of leading factories. The amount of unpaid excise taxes and VAT is calculated in tens of billions of rubles.

The first tax avoidance scheme is based on the organization of hidden production. Companies purchase more malt, hops, bottles and labels than is necessary for officially declared production. In addition, enterprises are increasing their water and energy consumption, while paper shows low capacity utilization (from 5 to 60%). Thus, the participants in the scheme produce unaccounted beer. That is, raw materials are purchased by controlled companies and transferred to the beer manufacturer without documents for the release of unaccounted products, his source explained to RBC.

The second scheme involves the release of alcoholic beer under the guise of soft drinks, lemonades or kvass, which are not subject to excise taxes. The production of soft drinks, for example lemonades, goes on the same lines as beer, and the recording of volumes is carried out only by turning on the meter. A number of companies declare the production of "cover goods," and in fact they produce unaccounted beer, the source said.

Beer, in the production of which shadow schemes were used, is sold in the company's own retail or through controlled bars and shops. Vyacheslav Mamontov, executive director of the Association of Beer, Malt and Beverage Manufacturers, adds that about 80% of the sale of unaccounted beer falls on "liqueurs that mimic catering points, trading in violation of the limit on sales at night and having a negative impact on the reputation of the industry."^[4]

A unified register of brewers is being created

On March 21, 2023, the State Duma adopted a law on the creation of a single register of producers of brewing products, cider, poire and mead. Rosalkogolregulirovanie has been appointed its operator. Read more here.

Mandatory digital beer labeling introduced in Russia

On April 1, 2023 Russia , the mandatory digital labeling beer and low-alcohol drinks in kegs is introduced. This was preceded by an experiment that lasted almost two years and ended on February 28. 359 companies took part in it. More. here

2022

2.4% decline in sales of non-alcoholic beer

Sales of non-alcoholic beer in Russia in 2022 decreased by 2.4% compared to 2021. Such data in November 2023 was published by BusinesStat analysts.

According to their estimates, the volume of the Russian market for beer and beer drinks in 2022 reached 9.8 billion liters, which is 0.7% more than a year ago. The growth rate of sales of these products decreased: in 2020 and 2022. They were measured + 2.4% and + 1.6%, respectively. Sales of alcoholic beer in the Russian Federation in 2022 increased by 1.1%, and sales of beer drinks decreased by 1.5%.

Speaking about the reasons for the growth of the beer market, experts noted that in conditions of instability, the consumption of alcoholic beverages usually increases. In addition, according to analysts, warm summer weather contributed to the growth of implementation, as well as the refusal of some Russians to travel abroad on vacation, which increased alcohol consumption within the country.

According to the researchers, against the background of a reduction in purchasing power, sales of alcohol in the economy segment are growing. Beer drinks are characterized by a high average cost. At the same time in 2018-2021. non-alcoholic beer and beer drinks demonstrated annual sales growth, they stressed.

The study also draws attention to the growing share of Russian beer brands. A number of foreign companies have restricted or suspended the production and export of beer products to the Russian market amid sanctions, violation of trade relations and logistics. In general, there is no shortage in Russia due to a large number of its own breweries. However, the beer market is close to saturation. He is pressured by a decrease in the income of Russians, an expansion of the range of other types of low-alcohol drinks, experts added.^[5]

6th in the world in terms of beer production

Beer production growth by 0.33% to 802 million decaliters

The total production of beer and beer drinks in Russia in 2022 reached 802.54 million decaliters, which is 0.33% more than a year earlier. Such data from Rosalkogolregulirovanie were published by Kommersant on February 17, 2023.

The newspaper noted the reduction in beer production by the largest producers in Russia. Thus, AB InBev Efes in the Russian Federation, the production of beer and beer drinks in 2022 decreased by almost 2% compared to 2021 and amounted to 223.29 million decaliters. Baltika had a decline of 4.7%, to 197.42 million gave a year by year. The Russian structure Heineken, which occupies the third place on the market, produced 93.65 million decaliters of products in 2022, which is 0.4% more than a year ago.

Member of the Presidium of Opora Rossii Alexei Nebolsin believes that the results of multinational companies are associated with a reduction in their portfolios of global brands.

The Moscow Brewing Company (MPK), which is one of the five players, in 2022 reduced production by 9% (to 36.93 million decaliters) amid the cessation of the release of part of global brands under license. The fastest growing beer producer among the ten largest players last year was MPBK Ochakovo - the company increased the beverage spill by 59.2% (to 17.2 million decaliters) and took sixth place in the market. Representatives of the company noted that the plant also began to work more actively with retail chains and expanded its geographical presence.

Igor Khavsky, co-owner of the SWAM Group distributor and Gletcher brewery, in a conversation with the newspaper, noted that the distribution capacities of global players will allow, meanwhile, to replace the departed brands and it is hardly worth waiting for a decrease in the share of transnational manufacturers at least in the near future. The top three players in 2022 took 68.5% of the beer market in money, up from 68.6% a year earlier, according to NielsenIQ.^[6]

Beer imports down 22.9%

Head of Rosalkogolregulirovanie: Beer imports in 2022 fell by 22.9%. At the same time, the growth of Russian production has already more than 2 times replaced the volume of imported products.

Chinese beer producer Tsingtao entered the Russian market

On December 13, 2022, it became known about Tsingtao's full-scale entry into the Russian market. The beer of the Chinese manufacturer in the Russian Federation began to supply the Moscow Brewing Company (MPK; one of the largest players in the market). Read more here.

Czech Republic continues to export beer to Russia amid conflict in Ukraine

Czech Republic continues to supply beer Russia in defiance of EU sanctions during the conflict on. To Ukraine The export of beer to the Russian Federation from Czech Republic is carried out through intermediaries according to the parallel import scheme. Companies do not want to lose the profit they made in the vast Russian market.

In January-September 2022, the Czech Republic exported 248 hectoliters of beer to the Russian Federation. A year earlier, during this period, the volume of exports to Russia was 390 hectoliters. Deliveries decreased, but did not stop. Alta Soft

Russia imports 98% of hops for beer production

As of April 2022, Russian brewers purchase 7-7.5 thousand tons of hops per year in Germany, the Czech Republic and the United States, Russian raw materials account for only 2%.

2021

Russia is the 4th country in the world in terms of beer consumption

Growth in sales of imported beer by 31% in physical terms

Closed borders and non-working bars increased the demand for imported beer: retail sales of the drink, which is imported into Russia from non-CIS countries, from March 2020 to February 2021 increased by 31.4% in physical terms. For comparison: sales of local Russian brands over the same period increased by only 2.9%, and licensed beer, that is, foreign brands that are licensed at the facilities of domestic breweries, by only 1.5%.

2020: Largest beer importing countries to Russia

The largest exporters of beer to Russia (import cost in 2020, million dollars):

• Germany - 82.3
• Mexico - 20.6
• Czech Republic - 19.5
• Lithuania - 14
• Belarus - 9.4

Mexican beer producers - Corona Extra - have lost hundreds of millions of dollars due to the coronavirus. Due to the consonance with the "coronavirus," Corona began to buy less in the United States and other countries. But not in Russia - the supply of Mexican beer increased immediately by 80%.

2019

 Consumption of 61 litres of beer per year per capita

Russia in 5 countries by the number of breweries

The top 5 countries by number of breweries for 2019 is as follows:

1. UNITED STATES (7141)

2. Germany (2158)

3. Great Britain (1811)

4. Italy (781)

5. Russia (743)

2018: Consumption of 74 litres of beer per year per capita

1986

Before the October Revolution

Notes