Russian Beer Output Falls on Restrictions, Fueling Vodka Gains

Russian beer output fell for a second consecutive month in September after the country imposed restrictions on sales in July.

Production fell 6.2 percent from a year earlier to 67.9 million decaliters, the Russian Statistics Service, or Rosstat, said in a statement today. Output declined 1.8 percent in August to 90.9 million decaliters, Rosstat reported Oct.1.

Russia banned kiosks from selling beer containing more than 5 percent of alcohol from July 1 and outlawed beer advertising on television, radio, billboards and internet from July 23. The measures, designed to fight alcoholism in the country, led to increased output of vodka and cognac. Vodka production rose 15 percent in September to 9 million decaliters, while cognac output gained 26 percent to 843,000 decaliters, Rosstat said.

Carlsberg A/S (CARLA), Heineken NV (HEIA) and Anheuser-Busch InBev NV (ABI) are among the largest beer producers in the country.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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