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Bud Faces a Tough Fight in Russia

Cerrahoglu on Wednesday announcing the Russian launch of Bud beer. Alexander Zemlianichenko JR.

Sun InBev, a subsidiary of Anheuser-Busch InBev, is bringing Bud, the legendary American beer brand, to Russia in what will likely be an uphill battle on the sagging market.

Bud will be a premium brand meeting the highest quality standards and will be produced domestically by Sun InBev, the company said in a statement Wednesday.

“We believe in the potential of this global premium brand on the Russian market and are proud to present the world's leading Bud beer in Russia,” said Tunc Cerrahoglu, president of Sun InBev. “We hope that the legendary Bud legacy will make its contribution to the culture of beer consumption in Russia.”

The company plans a big marketing campaign that will see the brand promoted on television and the Internet, as well as via outdoor advertising, the statement said.

The brand may face a tough market, however, as statistics released on Wednesday showed a decrease in beer production.

Beer production dropped 3.7 percent in April and 14.8 percent over the first four months of 2010, the State Statistics Service said. Beer makers link the downturn to a price increase they were forced to make after the government hiked the beer tax from 3.3 rubles per liter to 9 rubles per liter beginning Jan. 1, 2010.

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