Beer in Russia

PRE-COVID-19 PERFORMANCE

Slow sales growth due to saturation and sales returning to normal after World Cup

2019 saw sales growth rates in beer slowdown appreciably. This slowdown in growth was primarily due to category sales settling down after dynamic growth was registered during 2018, the result of the unusually long hot summer and Russia’s hosting of the 2018 FIFA World Cup.

AB InBev Efes Group assumes category leadership

AB InBev Efes Group overtook Baltika Pivovarennaya Kompaniya OOO during 2019 to become the leading player in beer in Russia. This is the first time in 10 years that the category has seen a change of leadership.

Baltika Pivovarennaya leads the dynamic category of non alcoholic beer

During 2019, Baltika Pivovarennaya remained the strong leader in the dynamic category of non alcoholic beer. Competition in non alcoholic beer is intensifying as sales increase and Baltika Pivovarennaya has benefited from its diverse product range, which is manufactured across six factories.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of beer are expected to fall by 30% in 2020 in light of the impact of COVID-19. This compares to an expected marginal sales decline forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within beer

As mentioned above, premium brands and imported lager are likely to have faced the strongest sales declines as a result of COVID-19 during the first half of 2020. Consumers are likely to have retrenched in terms of their choices in beer, preferring products that are comfortingly familiar and which present less risk of wasting money.

Recovery and opportunities

Prior to the onset of COVID-19, positive sales growth was being seen in beer in Russia. However, the advent of COVID-19 has interrupted the positive growth trends that had characterised the category throughout the second half of the review period and it is not expected that sales will return to pre-COVID-19 levels before the end of the forecast period.

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