Vadim Drobiz: ‘Russians drink about 11 billion alcohol a year, and 8 billion of it — beer’
Tatarstan produced 520 million litres of beer products last year
Russians consume almost 8 billion litres of beer every year. For comparison, the rest of alcoholic beverages account for a total of only 2.4 billion litres. This is explained by a low price, low degree and taste. However, such a picture did not always exist — during the Soviet era, the country was considered a wine and vodka country, and the situation changed about 30 years ago. Vadim Drobiz, the director of the Centre for Research on Federal and Regional Alcohol Markets CIFRRA, told in an interview with Realnoe Vremya about the alcohol market in Russia and Tatarstan and the reasons for the popularity of beer.
“The metamorphosis happened 30 years ago”
Which drinks are the most popular among Russians, and which are less popular?
I don't like the word “popular” in this aspect. It's important to keep in mind that consumption statistics are not a popularity rating. All drinks are popular, it's just that everyone has their consumer. It depends on the age, income, culture and upbringing of the person. Each drink has its own target consumer with its own portrait.
If we talk about consumption statistics, then 80% of the Russian alcohol market is accounted for by beer. Every year, Russians drink almost 8 billion liters of beer and beer drinks. Vodka accounts for 800 million litres, still wine — 600 million, sparkling wine — 200 million, low-alcohol drinks (up to 9 degrees) — 200 million, cognac and brandy — 130 million, alcoholic beverages — also whiskey, rum and gin — 120 million, fruit wines — 110 million, for ciders, perry and medovukha — 100 million.
In general, the situation with alcohol is as follows: the volume of beer is so large that statistics on other drinks are just meaningless, it dissolves. Russians drink about 11 billion alcohol a year, and 8 billion of it — beer.
How long has this statistic continued?
Russians drink beer many times more, but this was not always the case. This metamorphosis took place 30 years ago, when capitalism came. Under socialism, there was a completely different picture: the inhabitants of the USSR consumed wine products many times more than beer. In a year, one person drank about 27 litres of wine, and 24 litres of beer. Another 10 litres accounted for strong alcohol (vodka, cognac, port), and there were no other drinks in the country. We were considered a wine and vodka country.
How much alcohol is produced in Tatarstan?
Last year, Tatarstan produced 520 million litres of beer products — 6.43% of the volume of the Russian market, all other drinks are several times less. Residents of the republic drank 232 million litres, 3% of the total volume.
“Producers themselves want to see beer as the cheapest alcohol”
What is the reason for such a high volume of beer consumption?
This trend is associated with slightly expensive production, plus all producers themselves want to see beer as the cheapest alcoholic beverage. The thing is that alcohol is expensive in Russia as a whole, in Europe it is practically cheap, so the only loophole for the population is beer. Besides, it has a very low degree, which is why they drink such large volumes.
Another factor is that there are no such large margins in brewing as for other drinks. Moreover, about a third of beer products are sold at a discount. We have the largest companies that control 65-70% of the market. In retail chains, they arrange holidays for different brands — big discounts, up to 30%. Therefore, beer will always be the cheapest and most in-demand alcohol in Russia.
Why don't excise taxes increase the cost of beer?
Until 2010, the excise tax rate was extremely low. By 2011, it had been raised almost three times, and this had no effect on either production or consumption, because the excise tax was still small.
Now, of course, the excise tax is more serious, about 12 rubles per bottle, but it's not so much either. The formal minimum price per bottle is about 55-60 rubles, the official average price of a litre of beer is 165 rubles. Roughly speaking, the average price of a bottle of beer is 82 rubles.
Beer is not in danger at all. It will always be the cheapest and most in-demand alcoholic beverage on the Russian market.
“There has never been a shortage of beer in Russia after the USSR”
What is the volume of imported and domestic beer in Russia?
There has never been a shortage of beer in Russia after the USSR — imports account for only 5% of the total market volume. Out of the 8 billion litres produced, about 300 million litres are exported and about as many are imported to us.
How does this affect consumption statistics?
You need to understand that all imported beer is for the middle class, because it is expensive. It's just that a small group of the middle class drinks both foreign and domestic drinks, few people only imported ones. The middle class drinks about 5% of foreign beer and about 20% of Russian beer. At the same time, let's not forget that we also have our own premium group.