Beer lovers began to drink hard – Newspaper Kommersant No. 216 (7417) of 11/22/2022

Beer with a strength of 6% or more has become the leader in terms of growth in demand in the category over the past year. According to NielsenIQ, sales of such varieties in liters increased by almost 4%, and the share in the largest chains exceeded 11%. Market participants attribute the dynamics to the expansion of the range of beer with unusual flavors, as well as the desire of some consumers to save money by buying a smaller volume, but a higher strength.

According to the results of October 2021 – October 2022, beer with an ABV of 6% or more became the leader in terms of sales growth in the Russian market, according to NielsenIQ data. According to analysts’ estimates, in real terms sales of such drinks grew by 3.9%, light beer up to 4% – by 2.4%, and medium-strength varieties – by 1% year-on-year.

The share of strong beer in the market in real terms is also growing. NielsenIQ estimates that from January to October 2022, the rate increased from 10.6% to 11.2%. The share of varieties of medium strength during this period decreased from 86% to 85.3%, non-alcoholic – from 2.1% to 2%, and light – increased from 1.3% to 1.4%, analysts calculated.

Nikolai Zhelagin, founder of the Beru Vykhodny chain of beer stores, notes that the withdrawal of several imported brands from the Russian market has led to a noticeable increase in sales of Russian craft beer. And many traditional beers in the segment, like IPAs, tend to be above 6% ABV, he points out. According to Mr. Zhelagin, retail chains seeking to make up for the shortage of imported assortment usually agree on purchases from craft brewers of several varieties at once, which could also affect the sales structure.

Alexei Aksel, CEO of Volkovskaya Brewery and President of the Craft Brewery Association, points out that craft breweries occupy a small share in the assortment of large retail chains so that their performance affects the entire market. According to him, most likely, the trend is associated with an increase in demand for strong beer by large and medium-sized companies due to the desire of some consumers to save money by buying a smaller volume of the drink, but more strength. Director of CIFRRA Vadim Drobiz agrees that the growth in sales of strong beer fits into the traditional crisis patterns of consumer behavior, when the demand for alcoholic beverages with a higher degree increases.

The supply of strong beer is also growing. Thus, it follows from the reviews of the BeerBottle portal that the Russian Heineken structure (the Okhota brand, etc.) began to produce Amstel Extra beer with a strength of 7% until the spring of this year. Prior to that, AB InBev Efes (Amsterdam, 387 Osobaya Varka, etc.) launched Lowenbrau Bockbier with an ABV of 8%, and RCC Brew (50% owned by Baltika, part of the Carlsberg Group) had a Brew Moose drink Tomato Gose with a strength of 6%. In August of this year, AB InBev Efes also announced the localization of the production of some imported brands, including Leffe Blonde with a strength of 6.6%. In addition, retailers are launching their own strong beer brands. So, Perekrestok got Boyarin beer in a 1.3 liter bottle with 8% alcohol.

AB InBev Efes observes in its portfolio an increase in sales of beer with a strength of more than 8% by about 7% compared to the same period last year, says company president Oraz Durdiyev. According to him, this is primarily due to the expansion of the Lowenbrau brand line, as well as the growth of the Gold Mine Beer brand. In the report for the third quarter of 2022, AB InBev Efes noted the growth in sales of these brands by 14% and 8% year-on-year, respectively. Also, sales of the Essa brand, under which AB InBev Efes produces beer with fruit flavors, including 6.5% alcohol, grew by 12%. And non-alcoholic beer, which has been actively growing for a long time, showed dynamics at the level of zero in the third quarter, the company noted.

Heineken says flavored beers are the main source of sales growth in the strong segment, with strong specialty beers such as ales also showing a small increase. The dynamics here is mainly associated with an increase in the assortment on the shelf, the company noted. They added that they plan to continue to actively increase their share in the segment, including through the development of the Okhota brand.

Anatoly Kostyrev