Russian tipplers seek more bang for their bucks

Russia | Beer with an ABV of 6 percent or higher has seen its popularity surge over the past 12 months. According to NielsenIQ, volume sales of alcoholorific beers have risen by almost 4 percent in the major off-licence chains, capturing a share of 11 percent in sales at the end of October 2022. This was reported by the Russian newspaper Kommersant on 11 November.

Is history repeating itself? After the fall of the Soviet Union and the collapse of the Russian economy, enterprising Western brewers tried to wean Russians off vodka by luring them towards higher alcohol beers. It worked. Beer consumption skyrocketed in the 1990s, from around 20 litres per capita to well over 30 litres per capita.

Strong beers become the new growth category

In spring this year, Heineken began to produce Amstel Extra with 7 percent ABV. Prior to that, AB-InBev-Efes had launched Löwenbräu Bockbier with 8 percent ABV. Retailers have followed suit with their private label beers. The major supermarket chain, Perekrestok, is offering its own label beer, Boyarin, in a 1.3 litre bottle with 8 percent ABV.

This time round, however, market observers attribute the rise in demand for strong beer mainly to the impact of craft beer. Many craft beer styles, not least IPAs, tend to have higher alcohol contents. It cannot be ruled out, though, that some consumers try to save money by buying smaller volume, but higher strength beers.

Make mine a craft beer

Kommersant quotes Nikolai Zhelagin, the founder of the Beru Vykhodny chain of beer stores, who argues that the withdrawal of imported beer brands from the Russian market has led to a noticeable increase in Russian craft beer sales.

According to Mr Zhelagin, retail chains nowadays tend to stock more domestic craft beers, in order to make up for the shortage of imported beers. This could explain the shift towards stronger beers.

Alexei Aksel, CEO of Volkovskaya Brewery and President of the Craft Brewery Association, believes that some consumers try to save money by buying smaller volumes, but more strength. In fact, the growth in sales of strong beer fits into the traditional crisis pattern of consumer behaviour, when the demand for alcoholic beverages with a higher degree increases.