Licensing beer for retail sale is not expected to shift market dynamics or alter beverage prices. This view was voiced by Daniil Briman, chair of the Council of the Russian Brewers’ Union, in an interview with socialbites.ca. He responded to Deputy Sultan Khamzaev’s proposal to introduce a bill that would bar the sale of unlicensed beer, noting that the industry already funnels data into the Unified State System for Controlling Alcohol Production and Handling (EGAIS).
“Breweries operate both volumetric and batch accounting systems for production, and all information is automatically transmitted to the EGAIS platform. I don’t foresee this effort improving regulatory outcomes for beer sales. The proposal is unlikely to impact the market or pricing and would simply add licensing costs for retailers. Beer remains a dependable cash generator for retailers, with current margins typically ranging from 40% to 60%. That suggests strong profitability in this sector. It does not seem prudent to set a precedent that increases administrative burden, even if modest”, he stated.
Briman also pointed out that additional taxes on brewers would add to the overall complexity of the system.
“There is a well-known saying: Bolivar cannot double. We have repeatedly argued that some common denominator is needed. Either the EGAIS framework or the labeling scheme, and now the parliamentary initiative to require retail licenses, will need to be reconciled. If the goal is to raise taxes, then a straightforward increase in excise duties could be considered instead of adding new regulatory layers, which would complicate the entire system”, Briman remarked.
He further noted that counterfeit beer is not a significant issue in the Russian market because producing beer under a different name is not commercially profitable.
“Talk of fake beer is largely unfounded. The market has proven over time that creating beer under another brand is not financially viable. Beer is a technically intricate product, and mislabeling it is rarely profitable”, he observed.
According to Deputy Sultan Khamzaev, during the spring session, a bill is expected to be introduced to the State Duma that would mandate linking beer sellers to the Unified State System for Controlling the Production and Circulation of Alcohol (EGAIS) and would prohibit beer sales without a license. The deputy stated that once these products are included in EGAIS, retailers would be unable to operate without proper licensing. He contends that accounting for all beers within the system would substantially reduce the share of counterfeit products, which currently accounts for a notable portion of the market.
Analysts observing the situation in the broader North American market note a similar tension between licensing, taxation, and supply chain transparency. In regions with mature distribution networks, automated reporting to regulatory systems is common, and retailers often manage costs by leveraging established margins while complying with licensing regimes. The ongoing discussion in Russia highlights the universal trade-off between regulatory oversight and retailer profitability, a balance that Canadian and American markets monitor closely as they adapt to evolving enforcement and consumer protection standards. The central question remains how to protect consumers, ensure product integrity, and maintain a competitive market without imposing unintended burdens on retailers and producers. ”