Russian food & drink market update October 2018

Another steaming hot bowl of fresh Russian food and drink industry news is coming your way. Freshly baked stories this October include a proposed minimum price for beer in Russia, the IWA’s market issues, and an increase in candy prices nationwide.

Remember to keep coming back to WorldFood Moscow for more market insights!

Russia food & drink news roundup

Irish Association of Whiskey Producers highlights fake product problems in Russia

The Irish Association of Whiskey Producers (IWA) has stated that many counterfeit products are masquerading as real Irish whiskies in Russia. This is part of a general trend of fake, mislabelled and counterfeit products throughout the nation.
Worldwide, most fake Irish whiskey is made in the US, but the IWA’s legal adviser Carlin Madigan says there is a growing volume of Russian-made fraudulent products flooding the market.
Irish whiskey has a stellar global reputation, so the IWA is keen to protect its members’ status in key alcohol territories, such as Russia. To do so, the organisation has sent an application for original producers’ rights to the relevant Russian authorities.
Russian imports of whiskey total $250m a year – so you can hardly blame the IWA for looking out for its members in this heady market!


A new minimum beer price could come to the Russian market soon

Support is growing for the introduction of a minimum beer price on the Russian alcohol market. The All-Russian Public Organisation for Small and Medium-sized Enterprises, Opora Rossii, has leant its voice to the growing campaign.
The organisation wants to see a retail price of least 75 roubles ($1.15) for beer nationwide. According to Opora Rossii, this will help limit sales of counterfeit products, goods trying to avoid excise taxes, as well as grey imports.
Earlier in the year, it was announced that Rosalcoholregulation, a governing body overseeing alcohol production and sales, was in discussion with the Ministry of Finance to introduce the above measures.
Beer now holds a 45% market share of total Russian alcohol sales, although it wasn’t until recently that it actually became classified as an alcoholic beverage. Before then, beer was considered a soft drink in Russia, giving an interesting insight into Russians’ drinking habits.

Russian confectionery prices rise

With Russians consuming an average of 24kg per person a year, you could say the country has something of a sweet tooth. Satiating those urges may come at a higher cost though, as data from August 2018 reveals candy prices rose across the market.
While prices only rose 0.3% on average, according to data from the Centre for Confectionery Market Research (CICR), some products rose more than others. See below for a roundup of the increases:
• Cakes – 3% rise – 445 roubles/kg ($6.80/kg)
• Gingerbreads – 2.1% rise – 129.5 roubles/kg ($1.98/kg)
• Biscuits – 0.7% - 149.4 roubles/kg ($2.28/kg)
• Chocolate – 0.3% - 837.1 roubles/kg ($12.79/kg)
Prices rose most in St.Petersburg, with a 3% increase overall, whereas out in the Far East, they grew 2.3%. Conversely, the Southern Federal District actually saw prices drop by 1.8%.
“During the course of 2018, the price of sweets was slightly adjusted in comparison with 2017’s peak values,” Elizaveta Nikitina, CICR’s Executive Director, said. “However, due to an intensification of inflation, it is likely that prices will continue to grow until the year’s end.”