14 May, 2005

Russia: Beer production in Russia slightly decreased in Q1 2005

In the first quarter of 2005 Russian brewers produced about 17.16 million hl of beer compared to 17.26 million hl produced in Q1 2004. As a result beer output in Russia in the first quarter of the year decreased by 0.6%, according to Russian statistics department, Rosstat.

Beer production fell at almost all breweries. The reasons are very different. Some experts attributed the fall to the restrictions imposed on beer advertising. A decrease in beer production was registered as well at big companies like Ochakovo and Heineken. Heineken’s beer output decrease by 8% is ascribed to the investment activities of the Dutch brewer. In less than a year Heineken acquired 4 breweries in Russia. And they said Heineken intends to invest in some other enterprises in Russia.

The beer production fall was not registered only at several companies: Baltika increased its beer output in Q1 2005 by 20%, Vena +17% and Sun Interbrew + 5%.

The drop in the first quarter of Russian beer production was not so considerable, however experts at Rosstat believe this is a sign that beer production trend is to decline. Analysts forecast Russian beer production is to decrease by 5% in 2005 compared to 11% in 2004.

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