The last few years have been something of a boom time for all those companies involved in the brewery industry of Russia, as well as all those charged with the supply of the necessary packaging items, cans and bottles. Strong media campaigns and considerable investment by the country's beer providing sector had resulted in the residents in this traditional home of the hard spirit, being steadily tempted to convert their preference away from their beloved vodka and more towards hop-based products. Indeed, in the period 1999-2001 it was estimated that beer production increased by an average of 50% across the entire country, with even greater figures being recorded in western Russia. This article looks at the expansion of the sector, the results of the forth quarter collapse, and also the additional tax pressures.