31 January, 2006

Russia: Russian beer production is increasing moderately

In 2005 Russian brewers produced 89.2 million hl of beer, an increase by 6.5% compared to 2004. In 2004 Russian beer output was of 84.2 million hl with a dynamics of 11.5%, Russian Beer Union posted on January 30.

Vyacheslav Mamontov, the head of the Russian Beer Union, said the beer market was deeply influenced by the restrictions on beer advertisements. As a result in 2005 beer companies spent on advertisements US$ 40 mln instead of US$ 60 million.

Analysts of Russian Beer Union forecast an increase by 5-6% per year in the next 5 years when beer production capacities could increase by 15-20 million hl. The next increase will be based on regional development of distribution.

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