On June 24th, it was reported that the products of domestic alcohol producers in Russia are continuously sought after by consumers, and more and more Russians are choosing domestic beer and wine brands, which is driving the vigorous development of these two industries. At the Russian Retail Week special conference held at the International Trade Center, participants highlighted the above viewpoints.
Despite the overall market contraction in the past two years, the brewing industry still sees the potential to develop its own brands. As pointed out by Temuraz Boloyev, Chairman of the Development Committee of the Easy open end Beer and Soft Beverage Industry, the quality of domestic beer has been highly praised by consumers, which enables local brands to actively increase their market share. However, the industry also faces challenges: the tax burden continues to increase, and production has decreased from 11 million kiloliters in 2007 to 7-8 million kiloliters today.
One possible support measure could be to hold a beer exhibition similar to a wine show. According to Artur Samokhin, representative of the Ministry of Industry and Trade, this idea is being jointly developed with the Russian Quality Supervision Agency and the Ministry of Agriculture.
Baltic Beer Company emphasizes that Russian domestic beer is no longer seen as a "second best" option, but rather a mature product with its own unique brand image and growing consumer base.
Wine producers have also reported positive trends. According to the Wine Growers and Winemakers Association, by 2025, the sales of domestically produced wine in Russia will reach 688 million bottles, a year-on-year increase of 4%. At the same time, the total sales of wine in the country decreased by 4% to 1.1 billion bottles, while the market share of Russian domestic wine increased by 5 percentage points to 63%.
Beer and wine merchants believe that the industry's prospects depend on the balance between Russia's tax burden and government support. They believe that increasing consumption tax and tightening regulation may offset the positive impact of people's growing interest in domestic products. The solution lies in the cooperation between enterprises and the government, as well as creating conditions through retail and marketing activities (including promotions and exhibitions) to promote Russian domestic brands.
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