Russia and Beer Industry

Beer has been a popular beverage in Russia for centuries. The Russian Museum of Ethnography in St. Petersburg even houses an exhibit dedicated to the brewing and consumption of beer, and beer culture. While Russian Vodka remains the national alcoholic beverage, in recent years consumption of beer has risen (Kubilius, 2011). There are a wide variety of brands and types of beer readily available and extremely affordable in Russia, including imported beers. Restaurants and pubs sell Russian beer, and microbreweries exist in heavily populated Russian cities. According to the data of FAO UN for the year 2010, Russia ranks seventh among beer-importing countries. The United States continue to lead, importing more beer than Russia (Beer Business, 2011). Russia imports more than 300 million liters of beer. This beer import forms a market of $1 billion and yields more than $180 million in revenue to its producers (Beer Business, 2011). There has been a slow but steady gain of beer over vodka as the drink of choice among Russians. In the last decade, as incomes have risen, brewers have earned remarkable profits despite higher beer taxes being imposed. Carlsberg Group of Denmark, is the leading beer seller in Russia, and has about 40 percent of the market (Kramer, 2011). Russian regulation seems to consider beer a healthier alternative over vodka. Still, Russians drink slightly more vodka than beer. According to Bloomberg News, an average consumer drank 12.5 liters of alcohol last year, with vodka accounting for more than five liters. The laws combined with changing lifestyles contribute to the success of beer in the Russian marketplace (Kramer, 2011).

References

Beer Business . (2011). Retrieved from http://eng.pivnoe-delo.info/analysis-of-import-beer-market-in- russia/#018

Kramer, A. E. (2011, July 20). Russian Law to Restrict Beer Sales. The NewYork Times . Retrieved from http://www.nytimes.com/2011/07/21/business/global/russian-law-to-restrict-beer- sales.html?_r=1&adxnnl=1&ref=beerindustry&adxnnlx=1322737568-LTkFabIlnbQdbssvxUk5AQKubilius, K. (2011). Beer in Russia:. Retrieved from http://goeasteurope.about.com/od/russianculture/a/beerinrussia.htm