Market Research Reports - Ken Research Russia Non Alcoholic Beverages Market

Retrieving Russian Economy to Witness a Slow Growth in the Beverage Sector: Ken Research
Russia’s economic situation is affecting the beverage sector because consumers are spending
more on affordable beverages. The ever growing population in Russia is one of the major
factors for growth in the affordable beverage sector. The living standards in Russia declined due
to consumer’s lower spending limit. The lower income group and middle income group have
economized. However, the poverty level in the country is growing and the population is looking
for ways to save their money. Health awareness continues to influence consumer’s beverage
consumption choices. Russian government is providing generous subsidies to boost domestic
production of beverages, to reducing imports and become more competitive.
According to the study “Russia Beverage Forecasts March 2017”, it was observed that there is a
decline in the consumption of beer in Russia due to price and it has led to the growth in
regional inexpensive beer brands. Beer advertising is only permitted during sports in television
and radio programmes. Currently, beer advertising is continuing due to the FIFA World Cup that
would be held in Russia in the year 2018. Baltika Pivovarennaya Kompaniya is the leading
competitor of beer in Russia. Baltika has introduced new non/low alcohol beer with brand
name Zatecky Gus attracting the consumer’s who are interested in non/low alcohol beer. The
production capacity is increasing due to its great demand for non/low alcohol beer.
The sale of cider/perry has increased drastically in the recent years due to boom in domestic
cider production and availability of cider/perry in modern retailers. Young population are
attracted towards the cider/perry which is a natural low alcohol drinks compared to beer.
Baltika Pivovarennaya Kompaniya is the leading producer of in Russian cider/perry with a large
distribution chain. Russia passed laws stating that domestically cider/perry is categorized as an
agricultural product similar to wine.
United Bottling Group is the leading manufacturer of RTDs or high-strength premixes in Russia.
The country has banned sales of high-strength premixes or RTDs containing caffeine and
taurine that have energising effects. The growth of wine-based ready to drink beverages in
Russia has witnessed a low growth in the past years but there is a demand for wine based RTD’s
due to offers, increasing number of female consumers and no limitations on sales. Russian
health committees state that alcohol combined with caffeine and other stimulant have a great
impact on the central nervous system in a human and has dangerous health effects. It was
observed that the spirit-based RTDs are predicted to decline over the coming years. The wine
category in Russia is highly fragmented due to many players. The leading players in the wine
category are Kuban-Vino OOO, Igristye Vina ZAO, MZVV OOO, Viktoria TD OOO and Fanagoriya
APF OAO. The leading player in Russian sparkling wine is Abrau-Durso JSC.