- Title: Russia develops a taste for alcohol-free beer as government fights drinking
- Date: 21st June 2017
- Summary: KLIN, RUSSIA (RECENT) (REUTERS) EXTERIOR OF ANHEUSER BUSCH INBEV FACTORY ENGINEER OPERATING FACTORY CONVEYOR LINE VARIOUS OF BEER BOTTLES ON CONVEYOR LINE MOSCOW, RUSSIA (RECENT) (REUTERS) HEAD OF AB INBEV'S RUSSIAN BUSSINESS, DMITRY SHPAKOV, TALKING TO REPORTER (SOUNDBITE) (Russian) HEAD OF AB INBEV'S RUSSIAN BUSINESS, DMITRY SHPAKOV, SAYING: "Market of alcohol-free beer in Russia is relatively underdeveloped. If we compare it to markets in western European countries we find interesting statistics. For example, in Germany this market occupies about 5 percent of beer market. For example, in Spain it amounts to 13 per cent. All producers of alcohol-free beer in Russia amount to a little bit more than 1 per cent of the market which points to its huge potential." KLIN, RUSSIA (RECENT) (REUTERS) BEER BOTTLES ON DISPLAY VARIOUS OF EMPLOYEE CHECKING BEER VARIOUS OF BEER IN FLASK MOSCOW, RUSSIA (RECENT) (REUTERS) (SOUNDBITE) (Russian) HEAD OF AB INBEV'S RUSSIAN BUSINESS, DMITRY SHPAKOV, SAYING: "The most important (factor) is healthy way of living trend which affects not only beer industry, but all products and all markets. Russia now participates in this movement which is very good. No doubt it also affects the market of alcohol-free beer." KLIN, RUSSIA (RECENT) (REUTERS) VARIOUS OF BOTTLES ON CONVEYOR MOSCOW, RUSSIA (RECENT) (REUTERS) (SOUNDBITE) (Russian) HEAD OF AB INBEV'S RUSSIAN BUSINESS, DMITRY SHPAKOV, SAYING: "It's an undisputed fact that people are drinking less beer now. Over the past 8-9 years the market has been shrinking and today beer consumption per capita reached the critical point." BEER GLASSES ON DISPLAY VARIOUS OF FACTORY HALL AND MACHINERY VARIOUS OF BEER LABELS MOSCOW, RUSSIA (JUNE 21, 2017) (REUTERS) VARIOUS OF PEOPLE WALKING ON STREETS VARIOUS OF MEN SITTING AT RESTAURANT TERRACE (SOUNDBITE) (Russian) MOSCOW RESIDENT, KIRILL, SAYING: "You know, as an amateur brewer, I can say that manufacturers should focus on production of good-quality light beverages. For me personally, alcohol-free beer is a marketing trick." PEOPLE ENTERING RESTAURANT (SOUNDBITE) (Russian) MOSCOW RESIDENT, YURIY, SAYING: "Well, I think it (alcohol-free beer) is definitely in demand because it seems to me that if one likes beer taste but he does not want to get drunk and vandalise things, then why not? I believe it's a good practice - just like in Europe." PEOPLE ON STREET (SOUNDBITE) (Russian) MOSCOW RESIDENT, OLEG, SAYING: "I think it's not in demand. I don't understand such things - alcohol-free beer, rubber women. Everything must be natural." PEOPLE WALKING ON STREET
- Embargoed: 5th July 2017 14:38
- Keywords: Russia beer alcohol-free beverage production
- Location: MOSCOW AND KLIN, RUSSIA
- City: MOSCOW AND KLIN, RUSSIA
- Country: Russia
- Reuters ID: LVA0016M80WFT
- Aspect Ratio: 16:9
- Story Text: Russians are among the biggest drinkers of alcohol in the world, yet are developing a new taste for alcohol-free beer, which could help save a brewing industry that has stalled under government initiatives to discourage drinking.
Sales of zero-alcohol beer jumped 12 percent last year even as the broader Russian market shrank by 2 percent, according to research firm Nielsen, extending a 40 percent slide in beer sales since the government tightened regulations in 2008.
Anheuser Busch InBev plans to promote the alcohol-free version of its Bud brand as a sponsor of soccer's FIFA World Cup when Russia hosts it next year.
"All producers of alcohol-free beer in Russia amount to a little bit more than 1 per cent of the market which points to its huge potential," said head of Anheuser Busch InBev russian business, Dmitry Shpakov.
"The most important (factor) is healthy way of living trend which affects not only beer industry, but all products and all markets. Russia now participates in this movement which is very good. No doubt it also affects the market of alcohol-free beer," Shpakov added.
Last year AB InBev saw double-digit growth in Russian sales of its alcohol-free beers, and it expects to achieve a similar pace this year.
Carlsberg's Russian unit Baltika, which has the largest share of Russia's alcohol-free beer market, said this month it was making new investments in zero-strength beer.
The trend, say people in the industry, is being driven by a move towards healthier lifestyles among Russian consumers, nudged by government measures that include restrictions on alcohol sales and tougher penalties for drunk-driving.
Asked what they think about alcohol-free beer, Muscovites expressed polarised opinions:
"Well, I think it (alcohol-free beer) is definitely in demand because it seems to me that if one likes beer taste but he does not want to get drunk and vandalise things, then why not? I believe it's a good practice - just like in Europe," said Yuri, a young Muscovite.
An older Moscow resident, Oleg, expressed the opposite point of view: "I think it's not in demand. I don't understand such things - alcohol-free beer, rubber women. Everything must be natural."
Alcohol-free beer accounts for around 1.2 percent of Russia's beer market, according to Nielsen. That compares to 5 percent of the German beer market and 13 percent in Spain. - Copyright Holder: REUTERS
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