OREANDA-NEWS  The production of popular types of alcohol in Russia is steadily declining for a number of reasons, including a significant increase in excise taxes and an increase in producer costs. This was stated by Maxim Chernigov, Associate Professor of the Department of Management at the Presidential Academy in St. Petersburg. His words are quoted by Izvestia.

A noticeable increase in excise taxes, he explained, puts serious pressure on the dynamics of beer and vodka production. However, it is not worth reducing everything solely to this factor, the expert emphasizes. The market is also under pressure from the rising cost of raw materials, packaging, components and logistics.

The consequences of the Central Bank's tight monetary policy should not be discounted. A high key interest rate makes loans expensive, which also affects the situation in the alcohol industry. Chernihiv cited an increase in minimum retail prices for strong alcohol and a decrease in consumer activity as additional factors.

According to the results of the first eight months of 2026, vodka production in Russia decreased by 12.1 percent. The production of fermentation products, including beer and beer drinks, fell by 6.3 percent. Sales also showed a similar trend.

Andrey Moskovsky, President of the Alcopro Guild, attributed the drop in demand for popular types of alcohol to increased consumer pessimism in the domestic market. Russians, he explained, have become more attentive to expenses, and alcohol is the first category to cut spending.