Beer production in Russia decreased

The production of beer and beer drinks in Russia at the end of nine months of 2023 decreased by 1.45% (to 625.6 million decaliters) compared to the same period last year, according to data from the EGAIS system. At the same time, the output of beer decreased by 1% (to 549.7 million decaliters), and beer drinks – by 4.6% (to 75.9 million decaliters).

A representative of Rosalkogoltabakcontrol associates this trend with overproduction of products in 2022. But market participants do not agree with this explanation. The producers of beer and beer drinks were mainly hit by the additional regulatory measures introduced this year, labeling and the register of brewers, says independent expert Alexey Nebolsin.

From March 1, 2023, mandatory labeling of beer in kegs was introduced in Russia, and from October 1 – in polymer and glass containers. The cost of one stamp is 60 kopecks. with VAT, but the equipment for marking and control on each line and type of beer, for example, for Ochakovo, its representative estimated at 650 million rubles, or the cost of two new bottling lines. The introduction of a register of brewers also requires the installation of meters in production facilities with a capacity of 100,000 dal per year, which, according to small brewers, threatens many of them with bankruptcy.

Nebolsin points out that the entire group of drinks (beer, beer drinks, cider, poiret and mead) showed a decrease of 1.36% over the nine months. The expert also draws attention to the fact that from January 1, the Unified State Automated Information System takes into account the volumes that are supplied to new territories of Russia. That is, the decline in production occurs against the background of an increase in the number of consumers. Elena Tyukina, director of production at the Knightberg brewery, also speaks about this. She recalls that over the past 5 years, the brewing segment has been growing, although at a low pace. Now, due to the fall in production, the state will receive less than 2.6 billion rubles. in the form of excise taxes and VAT, Tyukina calculated.

Earlier, a representative of the operator of the labeling system, the Center for the Development of Advanced Technologies, said that due to the illegal trade in beer in 2022, the country’s budget was missing 35 billion rubles. This problem, according to the organization, could be solved with the help of labeling.

Small and medium-sized breweries could reduce beer output due to labeling costs, agrees Stanislav Kaufman, owner of the Kaufman branding agency. But for large players, according to Kaufman, it was significant that some popular international brands left the market, which they had not yet managed to replace with local brands.

Vyacheslav Mamontov, executive director of the Association of Beer, Malt and Beverage Producers, associates the decline in production with the trend towards savings. He reminds us that brewing products are not essential goods. Nevertheless, he said, “market participants continue to make every effort to provide consumers with a wide range of products.”