Russia: Carlsberg to increase the number of craft beer stores in Russia

Carlsberg Group plans to increase the number of craft beer stores in Russia by four times in 2021, ESM reported on June 2 citing a report in the publication Pivnoe Delo.

The brewer entered the craft beer market in Russia by supporting the development of Tank & Hopper's franchise network through its subsidiary, HoppyUnion.

Currently, there are 28 craft beer stores in Russia operating under the Tank & Hopper brand, the report said.

In 2019, the first Tank & Hopper store opened in St. Petersburg, with the minimum investment for a franchisee estimated at RUB 1.5 million.

Franchisees receive 0.5 to 4% of revenue in royalties, focusing on breaking even in the first three months of operations.

The franchise network is best suited in St. Petersburg and the Far East, the report noted.

The expansion project is set to commence this month, as the group expects to add nine more stores in June.

According to Carlsberg Group's plans, the chain was supposed to grow to 50 stores last year, but investors became cautious due to the pandemic.

The reports quoted Hoppy Union CEO, Igor Mayorkin, saying, "Many of our partners are connected with HoReCa. This segment has been hit hard. Now our task is to bring the number of stores in the network up to 100 units this year."

According to Vadim Drobiz, director of the Centre for Research on Federal and Regional Alcohol Markets, Carlsberg Group's entry into the craft market was predictable.

In developed countries, the craft beer market accounts for about 10% of the total turnover of beer and beer drinks, Drobiz added.

He added that this figure barely exceeds 1.5% in Russia, but considering that 1% for Russia is 70 million litres of beer, this quantity is "not so little."

Drobiz forecasts that the maximum limit for developing the craft segment in Russia is 4%–5% of the total beer turnover, the report added.

03 June, 2021