The Sales Revenue of Vodka and Alcoholic Beverages Will Continue to Go Down

During 2006-2010, supply of vodka and alcoholic beverages in Russia was decreasing on the average by 5% annually. In 2010, the supply volume amounted to 1.93 billion litres, i.e. by 463 million litres less than in 2006.

During the last five years the retail sales of vodka and alcoholic beverages in Russia areу showing negative trend. In 2006-2010, the sales volume decreased by 15%, i.e. from 1.97 billion litres to 1.67 billion litres.

Till 2009 decrease in sales has been stipulated by diversification of alcoholic beverages and by the preference shift of the population. As the incomes of the population were increasing, the consumers preferred prestigious alcoholic beverages such as cognac, whiskey, brandy more often. However, as the crisis began, the decrease in the consumption standard of vodka and alcoholic beverages stopped. In terms of alcohol, vodka and alcoholic beverages are cheaper than its expensive analogues.  Most of the consumers consider this fact as an important advantage of vodka.

According to BusinesStat estimates, till 2015 the sales revenue of vodka and alcoholic beverages will have continued to go down. It is connected with the price rise, which is intensified by excise taxes and consumers shift to cheaper alcoholic beverages, such as beer, cocktails, etc.

Since 2007 Russia has become net exporter of vodka and alcoholic beverages.  Expansion of the domestic production assortment allowed driving out import deliveries and becoming net exporter of vodka and alcoholic beverages. In 2010, the export volume of vodka and alcoholic beverages from Russia was equal to 90.2 million litres, having exceeded the import volume by 30.1 million litres.

The top exporters of vodka from Russia are Samara Plant Rodnik, Distillery Topaz and SPE RRVK. The share of these companies of the total export volume accounts for 70.5%. Leading importers of vodka into Russia are Image Holding, SC, Nemiroff and National Vodka Company. The share of these companies accounts for 85%of the total import volume.