Union: Cold weather, market regulation hurt Russian 2017 beer mkt

MOSCOW, Nov 22 (PRIME) -- Cold weather in the spring and summer of 2017 and a prohibition on sales of beer in plastic bottles with the volume of more than 1.5 liters have resulted in a 4.4% contraction of the market in January–October, the Russian Brewers' Union said in a statement late on Tuesday.

“According to estimates of the Russian Brewers’ Union, the Russian beer market has contracted by 4.4% in the first 10 months of 2017 compared with the same period of 2016. The major factors of contraction is the existing ban on production of beer in plastic packages with a volume of more than 1.5 liters, an excessive regulation of the beer industry, and unfavorable weather conditions,” the statement read.

But sales of alcohol-free beer increased by 5.6% in January–September, and the product accounted for 1.6% of the market in July–September, growing both on the quarter and on the year, the union said.

“Russian Brewers’ Union keeps its forecast for the beer brewing market to fall within 5% on the year in 2017. The segment of alcohol-free beer may become one of the drivers to overcome the contraction, and its prospects are high if the current marketing possibilities persist,” the statement read.

Data of the Federal State Statistics Service, published by the union, said that production of beer decreased by 3.8% on the year in January–October, and in October it rose 5.4% on the year but decreased 6.8% on the month to 533 million liters.

End