Russia’s alcohol industry presents challenges, opportunities

EPA PHOTO EPA/ANATOLY MALTSEV

Young people pour beer over a man during a beer festival in St Petersburg, June 13, 1999. The dramatic fall in the birth rate during the 1990s has been manifesting itself in much-reduced numbers of new drinkers (aged 18) becoming available to the market since 2008.

Illegal products account for 38% of the alcohol market and up to 50% of vodka sales in 2016


The total value of Russia’s alcoholic beverage market is estimated at $40 billion, with beer sales at approximately $15 billion (38%), Chris Weafer, senior partner at Moscow’s Macro-Advisory consultancy, wrote in an emailed report on April 26.

He noted that illegal products accounted for 38% of the alcohol market and up to 50% of vodka sales in 2016.

Sales of alcoholic beverages have been declining since 2008. Beer sales have fallen 40% in that period, Weafer wrote. Last year beer sales fe...


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