Russian beer prices hit 17 year high

Russian beer displayRussian beer prices are at a 17-year high as the market is squeezed by government regulation and falling consumption, according to a report in Izvestia last week. At RUB 85 a litre, beer now costs 12% more than it did at the beginning of last year and prices stand at their highest level since 1998. With escalating excise duties, increased government regulation and sales down 10.5% year on year this January, Russian breweries have been forced to streamline their operations and to raise prices. Earlier this year Baltika, one of the country’s largest beer producers, announced that it was closing two of its 10 Russian breweries, reducing capacity by 15% and cutting 600 staff.