AB InBev Efes: Beer production in Russia to fall 4–5% in 2022

MOSCOW, Jul 8 (PRIME) -- Beer production in Russia can fall by 4–5% in 2022 due to rising production costs and decreasing consumer purchasing power, Oraz Durdyev, acting president of Russian brewery AB InBev Efes, whose brands are Hoegaarden, Stella Artois, Velkopopovickó Kozel, told PRIME in an interview on Friday.

“We estimate that the market will fall by 4–5% by the end of the year in terms of production volume. We see that such a reduction when the costs are rising is inevitable,” Durdyev said.

Among the factors contributing to growth of the production costs are higher expenses on packaging, raw materials, transportation, the exit of foreign producers who supplied equipment and manufactured aluminum containers.

“As for this year and the forecasts, based on the current situation, growth could be about 10–15% for glass, 40–50% for plastic (raw materials in PET), 50–60% for aluminum (raw materials in cans),” he said.

Another important issue is a lack of hops on the local market. “It is possible to buy hops in Turkey, we are trying to establish supplies, but, unfortunately, the full range of varieties we use and need is not available there,” Durdyev said.

All producers are trying to curb price increases as much as possible taking into account a possible reduction in demand and a decline in purchasing power of the population, he said.

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