08 November 2003 01:53
Russian beer THE LEX COLUMN:
Mikhail Gorbachev tried to promote beer as a healthy alternative to vodka -
arguably one of the more successful policies of the last Soviet leader. Beer
consumption per head has since then more than tripled to almost 50 litres a
year. This fast-growing market has enticed such brewing giants as Interbrew,
Heineken and Scottish & Newcastle to bet heavily on Russia.
But growth seems to be stalling. The market leader, BBH, the main hope for
growth of S&N and Carlsberg, its owners, has increased volumes by 7 per
cent so far this year. It claims that is better than the whole market, but it
is still a far cry from previous years. Sun Interbrew, the Belgian
group's affiliate in the region, did much better, but mainly by
recouping market share it had lost last year. At least, margins are
increasing strongly. The Yukos affair has made some investors wary of the
risks of doing business in Russia. And Vladimir Putin has long been concerned
about the health effects of drinking, though he appears now to favour
educational measures rather than bans. That should, at least, mean fewer
heart attacks among vodka merchants, who at the start of his presidency took
fright at attempts to bring their business back under state control. And it
should ensure that the Russian beer market remains a stimulating topic for
the international brewery groups.
[FTI [The Financial Times]] |
RUSSIA IN FACTS
