Japan &Russia: Japanese breweries increase exports to Russia to meet increasing demand

The big Japanese brewers are expanding their business in Russia to meet growing demand as more young Russians choose beer over vodka, officials of these companies say, Beverage World released September 14.

Sapporo Breweries said it had started exporting 2,250 cases per month of its Yebisu brand through a trading firm in the eastern Russian port of Vladivostok.

"More and more people are choosing beer over vodka in Russia. We would like to develop our business actively in Russia, whose economy is growing," said Katsuhito Ogawa, a spokesman for Sapporo.

Sapporo, which entered the Russian market in 1996, aims to increase its sales of beer there to 22,000 cases this year, 40 percent more than last year.

Kirin Brewery Co Ltd said it had become the first big Japanese company to make beer inside Russia, with shipments due to start this month.

"It will bring benefits to Russian consumers in terms of prices and quality," said Kirin spokesman Yoshiki Yamashita.

Asahi Breweries Ltd said it had begun exporting to Russia its Prime Time brand. It said it hoped to expand exports to Russia.

In 2004, Russia was tied with Brazil as the world's fourth largest consumer of beer, guzzling down 8.45 million kiloliters, according to the results of a study by Kirin. The Russian beer market grew by more than 11 percent year-on-year in 2004, the third highest rate of expansion among the world's 25 biggest consumers of beer.