Alcohol production in Russia decreased for the third year in a row

The production of grape-based drinks without ethyl alcohol decreased the most (64.8% year-on-year), as well as that of products with low alcohol content (56.1%) and fruit (50.4%). .

RATC explained this trend by a change in the procedure for calculating excise tax and an increase in its rate not only for strong alcohol but also for non-strong alcohol. According to RATC, rising alcohol prices have dealt a severe blow to the production of low-quality beers and ciders.

“Many “manufacturers”, instead of the classic composition, mix alcohol with artificial flavors to create inexpensive drinks for every taste, and this is at best,” Andrei Moskovsky, secretary of the Alcopro guild, explained to RBC, recalling 46 fatal cases of methyl alcohol poisoning from the Mr. Cider drink in 2023. According to the expert, the State did not finalize the standard and, to combat the poor quality of the substitutes, significantly increased the taxes.

Vice President of the Association of Retail Market Experts Alexander Stavtsev told the publication that the decline is not a negative trend, but demonstrates the industry’s desire to normalize production volumes after the start of import substitution of beverages. alcoholic beverages in 2022. “Companies optimize production for specific market demands and make enough products to sell and not have excess stocks,” Stavtsev explained.

At the same time, in Russia in 2024, according to RATC, the production of alcoholic beverages increased (by 28.6%, up to 18.1 million decaliters), cognac (10.2%, 9.7 million decaliters), soft drinks sparkling wines (24.7%, 17.6 million decaliters) and still wines (8.6%, 32.6 million decaliters).

Earlier this week, Bacardi Rus and Campari Rus, which supply the Bacardi, Oakheart, Aperol, Cinzano and Campari alcohol brands, notified restaurants that they would increase sales prices by 5% to 20% in early 2025. Suppliers cite the weakening of the ruble and the increase in excise taxes on some types of alcohol as reasons for the increase.