Food alcohol production in Russia is reduced

The production of alcohol in Russia was reduced in the first quarter by 12% of the year, and shipments from factories by a quarter. The reason is an increase in excise taxes and minimal retail prices for strong alcohol since the beginning of the year. This forced retailers and distributors to form significant inventories at the end of last year, after their implementation, the market may return to growth.

The production of food alcohol in Russia in January -March amounted to 12.94 million decalits (DAL), declining by 12% of the year, follows from the “Kommersant” of the market participants. Shipments for the same period fell by 25% of the year, up to 8.39 million. Previously, alcohol production grew. In 2024, it reached 59.72 million, adding 5% a year to the year.

The fall in the alcohol market began after a reduction in alcohol spill. According to the Rosalkoltabakcontrol, in the first quarter of 2025, 19.5 million were produced more than 9%, a decrease in the year by the year amounted to 20.7%. The production of vodka in Russia fell by 22.7% a year by the year, gave up to 12.8 million, cognac-by a quarter, up to 1.4 million, the liquid-water products-by 9.2%, gave up to 3.6 million. Growth showed only wine. The production of quiet in January -March added 11.5%, gave up to 8.4 million, playful – 15.6%, up to 3.7 million. But this segment depends less on alcohol supplies.

A decrease in the production of alcohol and strong alcohol in early 2025 is largely due to a sharp increase in excise taxes, says Kirill Kirakozov, manager of Balchug LLC (official distributor of LVZ Saransky).

Since the beginning of 2025, the tax rate on ethyl alcohol has increased by 15%, to 740 rubles. for 1 liter. The excise tax on strong alcohol counted on its basis, according to Mr. Kirakozov, increased by an average of 23 rubles, although previously an annual increase was 5-7 rubles. The minimum retail prices (MRC) for alcohol were also increased: for example, for vodka – by 16.7%, up to 349 rubles. per 0.5 liter.

Now the market is adjusted, says the president of the Alcopro Guild Andrei Moskovsky. In anticipation of the growth of MRC and excise taxes since the beginning of the current year, all market participants-from distributors to federal networks-replenished warehouses, explains Pavel Pobedkin, owner of the Kaluga Liker-Vodka Plant. Direct purchases from manufacturers, according to him, allowed to create high reserves for January – February. Demand for products during this period, respectively, was reduced.

For LVZ “Saransky”, the volume of additional shipments, according to Kirill Kirakozov, in the fourth quarter of 2024 amounted to 5-10% of the annual supply. “Vodka, shipped on December 31, cost 23 rubles for the manufacturer. Cheaper than January 1, despite the date of actual production, ”he explains. The commercial director of the alcohol company Stellar Group Alexander Grevtsov believes that the popularization of Russian wines and regional anti -alcohol campaigns were affected in the strong alcohol market (See “Kommersant” from April 4).

The most pronounced decrease in the spill of food alcohol in the first quarter of 2025 was shown by the AO of the RFC.

The indicator decreased by 24% year by the year, to 499 thousand gave. The company also produces medical alcohol. Since the beginning of the year, these products have become a marginal, says Nikolai Bespalov, Development Director of RNC Pharma. He explains that before the introduction of excise taxes, medical alcohol in some cases could be used for other purposes, acting alcoholic companies. The Kommersant RFC did not answer Kommersant promptly.

The largest alcohol manufacturer in the country – Rosspirtprom JSC – in the first quarter of 2025 reduced production by 23% year by year, gave to 4.6 million. But the second most spill player – Renaissance LLC – was able to increase production by 38%, gave up to 1.49 million. This company became known in the market last year, starting to sharply increase the spill (see Kommersant on November 25, 2024). The third player in the market – Tatspirtprom JSC – reduced the production of alcohol by 2% of the year, to 1.04 million gave. Nikita Mingalev, Deputy Director General of the Tatspirtprom operating activities, says that the decrease is associated with the planned stopping of the distillery for preventive work and maintenance at the beginning of the year.

But the market trend may soon change. Approximately by May, the drains will be released and the production of strong alcohol will begin to grow, Andrei Moskovsky believes. In favor of this, according to the expert, says the lack of a significant decrease in sales. According to market participants, in January -February 2025, 19.22 million was sold strong alcohol, which was the least 1.9%. The alcoholic Siberian group also notes that sales of alcohol are stable.

Vladimir Komarov, Victoria Kolganova