
Russian beer market is becoming ever more difficult to operate on for the major international companies. On the one hand, they turned out to be the most dependent on the forex fluctuations, that is, ruble devaluation has sharply decreased their revenues. On the other hand, the mass beer brands that used to secure steady sales are currently difficult to fit into the narrowing market space, while brands by independent companies are gaining popularity. Falling volumes of production and revenues force companies to close breweries optimizing capacity utilization, to raise prices and consequently, lose consumers, and to focus on premium and international beer segments where their positions are still strong. While in 2014 these processes led to market premialization, by the end of the year the sales growth of inexpensive beer by independent producers started exerting such a strong influence on the market, that its polarization resumed again. (more…)