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Retail inflation in Russia leads to smaller beer cans Nov 22, 2024

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Russia’s leading beverage can manufacturer has reduced the size of its beer cans as brewers face inflationary pressures in the domestic market.

 

Arnest Packaging Solutions has stopped producing 500ml cans, replacing them with the 450ml size. Official statements from the canmaker, which acquired Ball Corporation’s plants in Russia after the US-based firm pulled out following the attacks on Ukraine, confirm that lack of demand for the 500ml size is behind the move.

 

In a statement, a spokesperson for Arnest Packaging Solutions said: “The transition to the 450ml can by large beverage manufacturers began back in 2016. At the same time, the demand for a 500ml can from representatives of the food & beverage industry fell annually by double-digit amounts.

 

“By 2024, it had dropped to minimum levels, and production amounted to 1% of the market volume.”

 

Arnest added that it gradually transferred its production lines to the 450ml format “as the demand of beverage producers changed”.

 

One reason behind the changes is the current high level of inflation in Russia, which forces local beer manufacturers to reduce the volume of cans for bottling of their drinks. Rising raw material prices and higher excise duties and taxes have also led to higher retail prices.

 

Market analysts believe that the visual difference between the cans is small but the 10% reduction in the volume helps to keep the retail price low.

 

This follows similar practices in the alcoholic drinks market, said Alexander Razuvaev, of the Guild of Financial Analysts and Risk Managers, in an interview with the Russian 360.ru web site. “We had 50g of strong alcohol everywhere, then 40g appeared. In order not to increase the price, the volume was reduced. So, maybe it’s something like that here.”

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