21 April, 2003

Beer production in Russia decreased by 5% in the first quarter of the current year in comparison with the same period last year. Russian brewers accuse the government of the decline, as it increased the excise-duty on beer by 25% with effect from January 1, 2003. However, analysts attribute the decrease to the rapid burst of beer production last year. According to them 2003 year will be a favorable one for the branch.

During the first quarter 2003 Russian brewers produced about 140.1 million dekalitres of beer versus 147.3 million dekalitres in the first quarter last year. According to analysts Russian beer market will increase by 8% during 2003 year. Last year Russian brewers output about 702 million dekalitres of beer.

However the brewers are pessimistic as they noticed the negative influence of the increase of excise-duty on beer. They consider the 25% rise of excise-duty will have a strong negative impact on brewing branch.

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