Drinks in Russia

• Carbonated beverages (Russian market)
• Alcoholic beverages (Russian market)
• Juices and Nectars (Russian market)
• Export and import of alcoholic beverages in Russia
• Export of water and soft drinks from Russia

Chronicle

2023: Growth in soft drinks production to 115.3 million dal

In 2023, the production of soft drinks in Russia amounted to 115.3 million decaliters against 107 million decaliters a year earlier. This is evidenced by the data of Rosstat, which became known in April 2024.

According to Vedomosti, prices for soft drinks rose amid the introduction of exchange rate duties, which pushed producers away from exports and forced them to focus on the domestic market, where they had to increase the cost of products to maintain profitability. In addition, the changes in the market are caused by the introduction of mandatory labeling of soft drinks and a tax on them. The excise rate is 7 rubles per liter, and these costs are added to the price of products.

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The introduction of labeling for soft drinks and excise taxes on soda with sugar in 2023 could also affect the market situation, says President of Soyuznapitkov Maxim Novikov.

Both measures required the industry to translate part of the costs into the cost of products, and the increase in prices, in turn, is directly related to demand and production volumes, he said.

According to the Ministry of Finance of the Russian Federation, excise taxes on sugar-containing drinks of Russian production in 2023 gave the budget 7.2 billion rubles, on imported drinks - 1.1 billion rubles.

The increase in costs among manufacturers was also led by a change in the exchange rate, an increase in the cost of logistics and a shortage of personnel, said Arthur Gafarov, director of strategic development at the Institute for the Development of Entrepreneurship and Economics. According to him, as a result, the cost of sweet soft drinks among the largest producers increased by 10-15%.

According to NTech for 2023, in the category "Sweet carbonated drinks" in terms of market share in monetary terms, the Good trademark (25.1%) leads, followed by Chernogolovka (17.6%), Cool Cola (6.8%), Coca-Cola (4.8%) and Everness (4.1%).^[1]

2022

Growth in the production of soft drinks in Russia by 45% to 9.5 billion liters

In 2022, 9.5 billion liters of soft drinks were produced in Russia, which approximately corresponds to the volume of one year ago. However, compared to 2018, the market volume grew by 45%, according to data from the analytical company BusinesStat, published in December 2023.

According to experts, until 2022, Coca-Cola and PepsiCo dominated the Russian soft drinks market. Most of the sales of carbonated and tea drinks fell on these corporations, and the rest of the manufacturers competed with each other, trying to take a small segment of the market, or engaged in related types of drinks - kvass, still drinks and power engineers, in which the positions of the giants were not so strong, the study said.

In 2022, Coca-Cola and PepsiCo, instead of completely leaving the Russian Federation, chose the option of getting rid of all Russian assets and formally leaving in the form of stopping the production of products under international brands and restructuring their portfolios in favor of local brands. But local producers were not prepared to maintain the status quo and took advantage of the situation. A natural reaction to the withdrawal from the market of the classic three drinks Coca-Cola, Fanta, Sprite from Coca-Cola and Pepsi, Mirinda, 7Up Pepsico has an instant appearance of analogues.

The company Ochakovo"" followed the path of replacing the entire three, releasing analogues in all three types - Cool Cola, Fancy and Street. GK Chernogolovka"" also released an analogue of Cola - "Kola Chernogolovka," but, unlike "Ochakovo," at the same time intensively promoted other drinks from its range with tastes traditional for the Soviet-Russian market. Other Russian manufacturers have also released lines of analogues of cola and other popular soft drinks, add to BusinesStat.^[2]

Sales of finished syrups decreased in Russia - by 14.9% to 19.5 thousand tons

In 2022, 19.5 thousand tons of finished syrups were sold in Russia, which is 14.9% less than the previous year. The main reason for the decline was the compression of demand from the population and the catering sector due to rising prices and a reduction in assortment, according to a study by BusinesStat, published in July 2023.

According to analysts, in 2022, domestic manufacturers faced a shortage and rise in price of individual food components used in the manufacture of syrups, problems with product packaging and equipment maintenance, and importers significantly reduced supply volumes due to violation of supply chains and due to sanctions.

According to the study, most of the ready-made syrups and toppings are sold to catering establishments: coffee shops, bars, restaurants, hotels and catering companies. For a long time in Russia, these products were niche and were used only by professional baristas, bartenders and chefs, but in recent years the market has received a new impetus for development. The growth in sales of finished syrups was largely facilitated by the popularization of the consumption of coffee and mixed drinks among Russians, as well as the expansion of the range of syrups and toppings presented in retail.

The demand for drinks and desserts with favorite tastes remained and was realized through the purchase of ready-made syrups and toppings in retail stores and marketplaces. Also, many coffee shops have launched express delivery of drinks and desserts. It was carried out both in-house and by third-party services.

In 2022, about 100 different flavors of ready-made syrups and toppings were presented in stores. The five most popular among Russians included chocolate (7.6% of the assortment), caramel (6.3%), maple (5%), strawberry (4.8%) and vanilla taste (4.5%).^[3]

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