Don’t miss the latest developments in business and finance.

World Cup brings no lasting cheer for Russian beer

Image
AFP Moscow
Last Updated : Jun 20 2018 | 10:55 AM IST

Football fans from around the world are flocking to Russia's bars, beer gardens and craft beer pubs to quench their thirst as the World Cup heats up.

But the surge in sales will not have a lasting impact on Russia's beer industry, where consumption has been losing fizz for years -- ever since it lost its classification as a soft drink.

Russia ranks 14th in terms of annual alcohol consumption per capita, according to the World Health Organization.

But with spirits -- chiefly vodka -- traditionally playing a stronger role in social life, Russia ranks far lower at 32nd in terms of beer consumption, according to a 2016 survey by Japanese beermaker Kirin.

Part of the reason why Russians are drinking less beer now than they were in the early 2000s is because of moves to restrict sales and advertising.

Higher taxes on beer and declining consumer spending power have also contributed to the decline.

More From This Section

The real turning point came in 2011, when beer was classified as an alcoholic drink rather than as a soft drink.

Since then, nighttime sales have been banned, as have sales at street kiosks and in particularly large volumes.

- 'Compromise' needed -
=======================
- Anyone for a craft beer? -
============================
But Euromonitor analysts expect that "larger brewers will also increasingly focus on craft beer so as to help offset losses in the lager category."

Also Read

First Published: Jun 20 2018 | 10:55 AM IST

Next Story