The Russian Brewers' Union reported on May 28 that the country's major beer producers OAO Baltika Brewery, ZAO Ochakovo and ZAO Vena filed a suit to the Moscow Court of Arbitration against tax authorities for publicly advocating an excise duty hike on beer. The companies filed the lawsuit namely against Vladimir Gubanov, head of department of alcohol and tobacco taxation at the Tax Ministry, who told a press conference in April that it was essential to raise excise duty on beer so that the government can receive more in tax revenues.

In January 25% rise in exercise duty was realised in order that the government can receive more in tax revenues.

Baltika was hit hard, as most of its beer is in the medium-to-low price range, which is particularly price sensitive. It reported a drop in both profit and market share. Baltic Beverage Holding, a joint venture between Carlsberg A/S and Scottish & Newcastle PLC, owns Baltika, the country’s largest brewer.

Russia's second-largest brewer Sun Interbrew Ltd, a unit of Belgium's Interbrew S/A, hasn't to date joined the other Russian brewers in public lobbying of any kind.

30 May, 2003