Faced with declining domestic sales, vodka makers in Russia are looking to increase their exports but their targeted markets such as the UK and the US are already overcrowded, according to market research group Euromonitor. Even so, some brands could do well in these markets, the researcher says. Russia is still a vast market for vodka, with current consumption around 1.8BN/l in 2005, but that has fallen from over 2BN/l. Sales are expected to fall by 25% in Russia from 2005-2010, to well below 1.5BN/l. Illegal vodka is estimated to account for a market worth around 40% of the value of the official market, but Russia's government is taking steps to eradicate this production because the products avoid taxes and can threaten consumers' health. However, the initial introduction of duty stamps was botched & led to an increase in production & sales of illegal vodka.
