Beer Production in Russia H1 2022 Update

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In the first half of 2022, the Russian beer industry showed a modest uptick, with production volumes rising by 2.7 percent compared to the same period in 2021. This uptick pushed total output to about 410 million decals, marking the strongest six-month total in seven years. Industry observers note that the gain reflects a combination of steady consumer demand, resilient distribution networks, and ongoing investments by major brewers aimed at maintaining cadence in both traditional retail and on-premise channels. The year-over-year increase aligns with a broader trend of stabilization after the prior year’s disruptions, underscoring the sector’s capacity to rebound from volatility while adapting to evolving consumer preferences.

During the same timeframe, domestic sales of beer in Russia declined by 1.4 percent year over year, coming in at roughly 356.6 million decals. This sales performance edged back to the 2021 level, illustrating a decoupling between production strength and consumer demand. Breaking down the period from January through March, sales stood at 162.5 million decals, but a notable recovery occurred in the second quarter, with volumes rising to 194.1 million decals from April to June. Analysts attribute the partial rebound in Q2 to seasonal factors, a shift in promotional activity, and a gradual alignment of inventory levels across retail partners, even as overall consumption faced headwinds from price sensitivity and evolving shopping behavior.

In early August, AB InBev Efes announced the initiation of production for several international beer brands within the Russian Federation. The rollout brings brands such as Spaten, Franziskaner, Leffe Blonde, and Brune into local manufacturing lines. Current production sites include facilities in Ulyanovsk, Kaluga, Omsk, Volzhsky, Saransk, Klin, and Ivanov. This strategy reflects a broader push to diversify brand offerings in the Russian market, reduce import lead times, and strengthen supply chain resilience in the wake of ongoing global disruptions. Industry stakeholders view the move as a bid to leverage existing brewing infrastructure to meet consumer demand for familiar international beers while balancing the portfolio with locally popular products.

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