Opora Rossii complained about large brewers

Multinational brewing companies are trying to avoid beer production checks by reducing the standard fermentation period for this drink. This is stated in a letter from the public organization Opora Rossii to the head of Rosalkogolregulirovanie (RAR) Igor Alyoshin, sent on March 10, 2023. A copy of the document is at the disposal of Vedomosti. The RAR confirmed receipt of the appeal.

Since the end of 2020, the State Duma has been considering a draft law on the creation of a register of brewers, without inclusion in which it will be impossible to produce beer, cider, poiret and mead. In the second reading, it can be considered already on March 14, a source in one of the specialized associations knows.

According to the bill, in order to enter the register, companies will have to pass an “onsite assessment”. As part of it, the volumes of actual beer production will be compared with calculations using the PAP method. To do this, a formula will be applied, according to which the minimum period of beer fermentation is 18 days. In addition, all enterprises in the industry will be required to install automatic measuring and accounting equipment (ASIiU) in production. Now such a requirement applies to brewers producing more than 300,000 decalitres per year.

The risk of not getting into the register under the new rules worried some industry participants. The Association of Beer Producers (APP; unites the largest companies in the industry AB InBev Efes, Baltika, Heineken Russia) in February of this year turned to Aleshin with a request to change the calculation method. In particular, these brewers proposed to reduce the minimum period of beer fermentation from 18 to 1 day. Otherwise, large manufacturers may stop their activities due to not being included in the register, the APP warned (Vedomosti told about this on February 28).

“Opora Rossii” in its letter indicates that even 18 days of fermentation is an underestimated parameter. Most brewers spend at least 28 days to produce the drink. The fermentation of beer within 1-4 days, which is referred to by multinational companies, may indicate a violation of technological instructions, the organization believes.

It also follows from the letter that the reduction of the standard terms will allow transnational companies to avoid the consequences in the form of a suspension of production due to the excess of the actual volume of output over the calculated one. In this regard, Opora Rossii asks that her opinion be taken into account in further work on the law and amendments.

The APP told Vedomosti that they are in favor of introducing a register of beer producers to combat illegal products.

The desire of large brewers to reduce the standard terms is understandable, says Vadim Deshevkin, the manager of the Afanasy holding (in particular, it produces beer under the brands Vintage and others; it is not a member of brewing associations) Vadim Deshevkin. Small companies, he said, do sell some of their products “in gray.” It is sold mainly through small wineries and draft beer shops. The absence of excises allows them to compete with international companies. Therefore, the latter believe that in this way a part of the market is taken away from them, although it is no more than 2% of the total output of enterprises.

Large brewers, on the other hand, have a competitive advantage: due to the use of enzymes, which allows them to reduce the maturation period, they are able to produce more products and keep prices low, thereby squeezing small players out of the market, Deshevkin explains.