Alcohol, Baltic Export, Baltic States – CIS, Lithuania, Markets and Companies

Although Russian market has not been closed for alcoholic beverages, brewers say they would manage the situation without addressing the Government about their woes and that businesses should accept the risks.

Head of Svyturys brewery Rolandas Virsilas says that if Russia imposed sanctions on brewers it would result in losses, but would not necessarily mean that noise should be made about it. According to Virsilas, he agrees with Prime Minister Algirdas Butkevicius who said that dairy processors transferred their risks on the shoulders of farmers and reduced milk buying-in prices. When asked why Russia did not close its market for brewers, the head of Svyturis said that Russia's export of strong alcoholic beverages is substantial and perhaps it does not wish to jeopardise it.

Head of Kalnapilis brewery, Marijus Kirstukas, said that the company's export to Russia constitutes less than 1 percent of export and the company does not feel and probably would not feel fundamental differences. The company's products are mostly consumed in Lithuania, other Baltic countries, the United Kingdom and Spain. Kirstukas says that Lithuanian brewers have no major plans on what would have to be changed if Russian embargo hit this sector. According to him, beer export to Russia is not as substantial and sanctions would not have significant economic effects on brewers.

Head of Gubernija brewery, Vijoleta Dunauskiene, noted that currently brewers have other more important problems than possible Russia's sanctions against them. "Products from other countries enter our market sector without import duties or any restrictions. We face double pressure, especially because of Belarusian beers with Lithuanian trade names which are not subject to duty tax. Our market is distorted," said Dunauskiene. Gubernija brewery's products are mostly exported to Poland, Latvia, Germany, the United States and Africa.