Beer in Estonia

PRE-COVID-19 PERFORMANCE

Excise taxes on beer slashed in 2019, convincing Estonians to purchase beer locally rather than in Latvia

Off-trade volume sales of beer bounced back in 2019 after a significant double-digit decline in 2018. Falling volume sales were the result of higher excise taxes being applied to beer and consumers responding by crossing the border and purchasing cheaper off-trade beer in neighbouring Latvia.

Robust demand for non alcoholic beer continues in 2019

Mirroring patterns seen during the review period, volume sales of non alcoholic beer registered impressive double-digit growth in 2019. In large part, the heightened demand for non alcoholic beer has been a result of consumers increasingly embracing the popular health and wellness trend which has convinced many health-conscious consumers to reduce their alcohol consumption.

A Le Coq boosts volume share and maintains leadership in beer in 2019

After a slight decline in volume share in 2018, A Le Coq saw its volume share rise in 2019 and the company maintained its leadership in the beer category. A Le Coq’s strength was based in its raft of well-recognised and popular brands, including A Le Coq Premium, Alexander and Pilsner.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of beer are expected to fall by 29% in 2020 in light of the impact of COVID-19. This compares to an expected 5% decline forecast for 2020 during research conducted in May 2019, i.

Affected products within beer

By the end of 2020, total volume sales of beer are set to decline by 6%. In particular, demand for on-trade standard lager—the largest area in the beer category—is expected to record a very significant decline in 2020 as a result of the disruption of late service at restaurants, bars and other catering establishments during the lockdown and, later in 2020, as a result of the subsequent reluctance of many consumers to return to these venues.

Recovery and opportunities

After a considerable decline in 2020, on-trade volume sales of beer are expected to bounce back strongly in 2021 as consumers return to restaurants, bars and similar venues that serve beer. But as consumers do return, they will be faced with an altered ambience and significant changes in the way many of these venues do business, lingering effects of the response to the pandemic.

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