Support The Moscow Times!

InBev to Close Down Second Plant in Russia

InBev, one of the largest international beer producers, has decided to close down a second factory in Russia after its negotiations with the government on subsidies failed, Kommersant reported Wednesday.

InBev, the world's second biggest beer maker after Carlsberg in terms of sales, will close its plant in Novocheboksarsk, Chuvashia, due to the Finance Ministry's decision not to subsidize beer producers losing money because of a higher alcohol excise tax, said Andrei Yerin, head of corporate relations at SAN InBev, the company's Russian subsidiary.

The plant, which produces 10 percent of the company's beer in Russia, had earlier asked the government to provide subsidies equal to a total of 60-70 million rubles ($1.9-2.2 million) per year, or 2 rubles per liter of beer.

SAN InBev showed the worst results among market leaders in the first quarter, with sales dropping by 17 percent.

The company, which still runs 7 plants in Russia, closed its plant in Kursk last year, saying the decision was aimed at preserving competitiveness.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.