The end of the era of expensive alcohol: the Krasnoe & Beloe chain has demanded that distilleries lower their alcohol prices.
Russia's largest alcohol retailer, Krasnoe & Beloe, sent an official letter to liquor producers demanding they freeze or reduce their wholesale prices. The chain's management argues that the sharp rise in alcohol prices has led to widespread savings on alcohol in the regions, and stores are rapidly losing revenue.
Rising excise taxes and falling sales in the mid-price segment
The main reason for the protracted market crisis was the January increase in excise taxes, which forced manufacturers to raise wholesale prices by 10-17%. According to official data from Rosalkogoltobakkontrol, legal alcohol sales in the country fell by 6,28% year-on-year in May 2026 alone. The hardest hit was the mid-price segment, the most profitable and high-margin segment for retail, where the decline in demand was most noticeable.
The industry's situation will worsen starting July 1, 2026, when the tax burden on distilleries will increase even further. According to the new rules, producers will have to pay excise taxes upfront, immediately upon purchasing the raw alcohol, rather than after the finished bottles are shipped off the production line. Experts interviewed by Kommersant warn that if producers succumb to pressure from Krasnoe & Beloye, other national retail chains will immediately issue similarly harsh ultimatums, putting the entire legal alcohol business in Russia on the brink of survival.
Russian wine production collapses amid rising prices
The decline in purchasing power has already directly impacted the domestic wine industry. It was previously reported that in the first five months of 2026, industrial production of still wines in Russia fell by almost 15%, while sparkling wine production declined by 15,1%.
Industry analysts attribute this deep decline to a sharp decline in consumer demand amid relentless price increases. In just one year, the average price of wine on Russian store shelves has increased by approximately 10%, while market participants estimate that the actual price increase for some items has reached 15%.
