In the first half of the year, beer imports to Russia increased by almost 35%

In the first half of the year, beer imports to the Russian Federation increased by almost 35%, to 179.9 million liters, exceeding the same figures for 2019-2020. This was mainly due to purchases by retailers of inexpensive beer in Germany, Belgium, the Czech Republic and China. Experts and market participants believe that it can seriously compete with domestic producers.

Kommersant got acquainted with the data of beer market participants on its supplies to Russia: in January-June, imports grew by 34.9% year-on-year, to 179.9 million liters. This is more than in the first half of 2019 and 2020 by 20.8% and 4.7%, respectively, but 19% less than in January-June 2021.

After the outbreak of hostilities in Ukraine in February 2022 and the tightening of Western sanctions, difficulties arose with the import of beer. Deliveries were stopped, for example, by companies from the UK, the USA and Canada. Distributor SWAM Group estimated a decrease in the volume of beer supplies in 2022 at the level of 30-35%.

In the first half of 2023, Germany will continue to be the largest beer supplier to Russia. According to Kommersant’s data, year-on-year imports from the country increased by 46.4%, to 102.7 million liters. Deliveries from Belgium doubled to 19.4 million liters, from the Czech Republic – increased by 32.4% to 19.2 million liters. Imports of beer from China more than doubled to 8.4 million liters, taking fourth place in terms of beverage supplies to Russia. At the same time, Lithuania dropped out of the top five exporting countries – deliveries from there fell 2.6 times, to 4.4 million liters.

Retailers provided the bulk of imports. As follows from Kommersant’s data, in January-June, supplies of beer from abroad more than tripled at Krasny & Bely, to 55.4 million liters, at Bristol – by 48.4%, to 19 million liters, X5 Group — by 22.3%, up to 14.8 million liters. Magnit increased beer imports by more than eight times, to 5.4 million liters year on year.

Managing director of X5 Import Artem Pereslavtsev says that beer imports are growing due to private labels (PL) and exclusive brands for X5. Brands such as Frankfurter, Furstkeg and Patronus, as well as mid-range brands Lauterbacher and Troll Brew, have become drivers, he said. X5 plans to increase imports of beer, replacing the more expensive positions of local distributors, said Mr. Pereslavtsev. In “Red & White” and “Magnet” “Kommersant” did not answer.

Igor Khavsky, co-owner of SWAM Group, says that for their own import chains are primarily looking for beer at low prices, while producers are ready to ship only large volumes under such conditions. Nikolai Zhelagin, founder of the Beru Vykhodny chain of beer stores, notes that there are large brewing companies in Germany that produce under private label chains, and Russian consumers “associate German beer with high quality.”

Meanwhile, consumption trends do not coincide with supply dynamics. As Mr. Khavsky notes, there is no growth in demand for mass imported beer. According to NielsenIQ, in the first half of the year, imported beer sales decreased by 19% in liters and by 25% in money terms. Kommersant’s source on the market, however, emphasizes that a year earlier, against the backdrop of the excitement of the first months of hostilities and the intensification of sanctions, it was imported beer that was in high demand, so a high base was formed.

Igor Khavsky believes that, taking into account the shelf life, “many imported lots (although not all of them, problems with the sale of “iconic brands” are not expected) will eventually be sold at discounts.” The top manager adds that this will create a problem, first of all, for internal suppliers.

Alexei Aksel, CEO of Volkovskaya Brewery and President of the Association of Craft Breweries, says that imports have also resumed of popular bygone brands like Guinness and Corona Extra, which are “again increasing their share in bars and restaurants, displacing local craft beer.” President of AB InBev Efes Oraz Durdyev assures that he does not observe pressure on the market of cheap imports, and the share of the import segment “even with an increase from 2.5% to 3% in the future will remain insignificant.” According to Nikolai Zhelagin, the import of cheap beer in the near future will depend on the growth of exchange rates, as well as the conditions for mandatory labeling in 2023–2024.

Anatoly Kostyrev