Русский
Western brewers market exit actually resulted in a domestic profit boosts for Russia
In good news for thirsty Asians, and bad news for Denmark’s Carlsberg and the Netherlands Heineken, Russia’s Agroexport Center has identified the most promising markets for Russian beer exports and the regions of the country that have the greatest export potential in a new report.
Carlsberg exited the Russian market with a loss of €5 billon last year, selling its breweries and shares to the Russian government. Heineken pulled out of the Russian market in 2022 and sold its assets to its Russian management for just €1.
Both of those businesses are now fully Russian owned and are part of state plans to increase exports. According to the Agroexport Center, the most promising markets include China, Belarus, the United Arab Emirates, Kazakhstan, Mongolia, Kyrgyzstan, Serbia, Malaysia, Azerbaijan and Georgia, which are very attractive “in terms of existing conditions, including an acceptable customs tariff burden and significant potential for growth of imports.”
Russian beer exports to China could grow to 46,800 tonnes worth €31.7 million in 2026 from 31,200 tonnes worth €14.65 million in 2023, and increase their share of Chinese beer imports by value to 5.3% from 2.7%, the center estimated. China imported 422,500 tonnes of beer worth €533 million in 2023.
Russia has the potential to increase beer exports to the UAE to over 11,000 tonnes worth €7.1 million in 2026 from less than 0.01 tonne worth €90,000 in 2022. The UAE tourism sector is a growth alcohol market, and imported 194,200 tonnes of beer worth €158.8 million in 2022.
Russian beer exports to Kazakhstan are forecast to grow to almost 71,000 tonnes worth €30 million in 2026 from 63,000 tonnes worth €26.3 million in 2023.
The most favorable conditions for exports in Russia exist in its 29 domestic regions, the report said. They include regions able to consume products from a brewing industry that produces more than 176,000 tonnes of beer annually.
Agroexport head Dmitry Krasnov was cited as saying in the report that global beer consumption is at a steadily high level and continues to grow with the increase in assortment and creation of new innovative flavors and recipes. Russia exported €147.47 million worth of beer to 39 countries in 2023.
Prior to the Western brewers exiting Russia, the profits on both their Russian domestic production sales and their Russian export sales would have been taxed in Russia at the regular Corporate Income Tax rate of 20%, with the profits being repatriated back to Europe. Today, as these businesses exited Russia, the income tax collected by the Russian government remains the same however the profits generated also now remain in Russia.
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