26 June, 2005

Russia: In the next 4-5 years Russia might loose brewing industry

In May 2005 Russian breweries produced 8.96 million hl of beer. For the first five months of the year beer market has expanded by 2.9%, the federal statistics authority communicated.

The tendency is considered by analysts to be not favorable for the beer industry. Vyachaslav Mamontov, the President of the Russian Brewers Association, said that this is a sign of a coming stagnation in the brewing industry. The result is attributed to the increase of excise tax up to 20%. If the legal and administrative pressure is to be continued in the next 4-5 years Russia may loose one of its leading industries, Mamontov said.

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