Russian wine and vodka output falls as demand, taxes and harvest delays hit producers
Russia’s wine production fell 14.8% and vodka output declined 12.1% year on year in January-August 2026. Weaker demand, higher prices, new excise-payment rules and a delayed grape harvest contributed to the contraction.
Alcohol output contracts across major categories
Russia produced 684.1 million decalitres of alcoholic beverages in January-August 2026, down 7.2% from the same period of 2025, according to data from the Federal Service for Alcohol and Tobacco Market Regulation reported by Interfax. Excluding beer, beer-based drinks, cider, perry and mead, output fell 13.1% to 90.7 million decalitres.
The decline extended across wine and distilled spirits. Grape wine production decreased 14.8% to 20.4 million decalitres, while sparkling wine output fell 14.6% to 8.9 million decalitres. Liqueur wine recorded a steeper 42.6% contraction to 482,800 decalitres, and fruit-based alcoholic beverages declined 37.7% to 621,400 decalitres. The figures indicate that the downturn was not confined to a single price segment or beverage type.
Vodka and beer producers also reduce volumes
Vodka plants produced 39.6 million decalitres during the eight-month period, 12.1% less than a year earlier. Cognac output fell 16.8% to 4 million decalitres, while total production of spirits above 9% alcohol declined 10.9% to 59.8 million decalitres. Liqueurs and other compounded spirits were the exception, edging up 0.1% to 11.4 million decalitres. Production of low-alcohol drinks more than halved to 495,600 decalitres, Interfax reported.
Fermented beverages remained the largest category by volume but also contracted. Their combined production fell 6.3% to 593.4 million decalitres. Beer output declined 6.2% to 507.6 million decalitres, and beer-based drinks fell 7.9% to 75.9 million decalitres. Cider, perry and mead together increased 1% to 9.9 million decalitres. Within that group, cider rose 0.8% to 7 million decalitres and mead gained 2.4% to 2.7 million decalitres, while perry dropped 15.5% to 130,900 decalitres.
Demand weakness meets tighter working-capital conditions
Zab.ru cited Alcopro guild president Andrey Moskovsky as attributing the broader fall to persistent weakness in alcohol demand and an economic slowdown that has prompted retailers and producers to limit inventory. Alcohol-market expert Sergey Gladyshchuk said higher minimum retail prices and increased excise duties had made nearly all spirits more expensive since the start of 2026. Restaurant and hospitality demand was particularly weak: Zab.ru, citing Kommersant, reported that HoReCa alcohol sales fell 42.4% to 818,300 decalitres in the first half, while nationwide store sales slipped only 0.65%.
A change in excise-payment timing has added pressure on producers’ cash flow. Since July 1, 2026, excise on alcohol must be paid when manufacturers purchase spirit from the raw-material producer, rather than when finished products are shipped. Moskovsky said this forces companies to commit substantially more working capital in advance. Wine producers faced additional operational constraints in August. A Kommersant source cited by Zab.ru linked the decline to electricity-consumption restrictions in Crimea after network damage and to a later grape harvest: picking began in late July in 2025 but only in the final third of August in 2026. As a result, some grapes intended for sparkling wine had not been harvested when the production statistics were compiled.
