Page 86 - RusRPTMar20

9.1.5​ Retail sector news
Russian Beer market industry union requests minimum retail price. ​In 2019, Russian beer volumes consumed increased 1.5% to 69mhl, as there were no new tight regulations on the sale and promotion of beer, while excises stayed flat. The latter are to increase 5% y/y in 2020 while the limitations on sales in shops located in residential areas only apply in some regions. Thus, we think that volumes are sustainable y/y and AB InBev Efes is to outperform the market as ti still has the potential to optimise routes-to-market and its relationships with key accounts after the merger.​ ​The Russian beer union has requested that the Ministry of Finance consider introducing a minimum retail price for beer.​ ​The initiative targets the aggressive promotional activities across retail chains and the participation of the largest producers, which is having a negative influence on smaller and local breweries. According to Nielsen, in 2019 the average price of beer was RUB97/l while the share of promos stood at 55%, with offers occasionally coming in at less than half of the blended market price.​ ​ The union and government officials are yet to present thresholds for a minimum retail price, or for the timing of such a move.
86​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com