E-Malt.com News article: Belarus: Large share of imported beer worries the authorities

Imported beer accounted for about 30% of the total volume of beer sold in Belarus this year. The data was voiced at the government session held in Lida on 11 September to discuss problems of the Belarusian brewing industry, BelTA reported.

The rising volume of beer import is said to be one of the key reasons negatively affecting the development of Belarusian breweries, primarily those with a state share.

In 2012 Belarusian breweries operated at 62% of the output capacity and the falling production trend continues this year, too, said Chairman of the State Control Committee Alexander Yakobson. Breweries with a share of foreign capital are moving in. In January-July 2013, Belarus imported $44.9 million worth of beer, with beer export at $17.7 million.

Vladimir Kalenik, Head of the Central Office for Control over Consumer Market and Services Sphere of the State Control Committee of Belarus, believes that the import percentage is abnormal for a country with a well-developed brewing industry, which relies on local raw materials and is capable of satisfying the domestic demand with quality products. In 2012, imported beer accounted for 3.7% of the total resources in the Russian Federation, 1.3% in Ukraine, and 2% in Poland.

In addition to specialized importers individual Belarusian brewers import beer, too. Thus, the breweries Olivaria and Heineken Breweries imported 0.17 million hlf of beer in 2012, 14.4% of the total imported beer.

Meanwhile, foreign corporations which operate breweries in Belarus are unwilling to develop the local facilities to the full capacity and instead prefer importing their brands, in particular, from the Russian Federation and Ukraine.

Chairman of the Belarusian state food industry concern Belgospishcheprom, Alexander Zabello, said that Russia accounts for 62% of the beer import and Ukraine accounts for 28%. He believes that Russian and Ukrainian breweries sell their excessive supplies to Belarus at dumping prices. For instance, at present Baltika beer in Belarus is up to 20-30% less expensive than in Russia. Taking into account the money of parent companies international breweries can drop up to 50% off their product’s price to secure space on retail shelves. As a result, products of the Belarusian brewery Krinitsa, for instance, account for about 5% on shelves of major shopping centers.

Vladimir Kalenik said that the fresults of import substitution efforts on the Belarusian beer market are hardly noticeable. Prices for Belarus-made import-substituting beer varieties are already comparable with the prices for beer made by major European manufacturers. For instance, in Poland, which is the world’s fifth largest beer consumer, the average price for a liter of beer stood at €1.3 at the end of 2012 or about Br15,000 if calculated using the exchange rate of the National Bank of the Republic of Belarus. Meanwhile, Belarus-made beer may cost up to Br17,000. Belarusian brands cannot compete with imports.

The measures the government takes to deter beer import, particularly with regard to transnational corporations, are not always effective.

In 2012 Belarusian breweries turned out 0.48 million hl of import-substituting beer, 11.1% of the total output and 114.1% of the targeted output. In January-June 2013 Belarusian breweries turned out 0.24 million hl of import-substituting beer, 10.9% of the total output and 47.9% of the targeted output.

In order to improve the situation on the Belarusian beer market, proposals have been voiced to work together with the governments of the Eurasian Economic Space member states to discuss the optimization of foreign trade in beer. In addition to other measures suggestions have been voiced to sign contracts with international brewing companies (Heineken, Carlsberg, OLVI, the Belgian company Anheuser-Busch InBev, and the British company SABMiller) for the sake of allowing Belarusian breweries to make their beer in order to reduce the import of these brands to Belarus and increase export.


17 September, 2013