Nyet! Russia to Curb Strong Beer

Bill would ban beers stronger than five percent alcohol from outdoor kiosks, airports, and train stations, as well as in stores between 11 p.m. and 8 a.m.

February 24, 2011

MOSCOW - Russia has begun passage of a bill to restrict sales of strong beer, a move that would provide a double hit on brewers as it comes following last year??s excise tax increase, Reuters reports.

The country??s state Duma said the initial draft of the bill would limit sales of beer stronger than five percent alcohol as part of a nationwide effort to curb alcohol abuse. It faces two additional readings and the approval of the Kremlin in order to become law.

If the bill passes, strong beer sales would be banned from outdoor kiosks, airports, and train stations, as well as stores between 11 p.m. and 8 a.m.

Reuters predicted passage of the law would erode Russian brewers?? sales growth, which took a hit last year as Russia raised excise duties by 200 percent.

Danish brewer Carlsberg, owner of the best-selling Baltika beer in Russia, warned of modest growth and squeezed margins in Russia. And SABMiller said that 2010 would be its third consecutive year of falling Russia sales.

Russia is considered a high-growth emerging market for global brewers looking to expand from increasingly health conscious countries.

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