The online alcohol debate: When will it be possible to order alcohol online in Russia? Exploring the pros and cons of this emerging trend.

In September, the Association of Internet Trade Companies (AKIT) sent a letter to the Minister of Digital Development, Maksut Shadaev, requesting support for online alcohol sales with age verification through biometrics. This is not the first time businesses have approached the Russian authorities with such a request—discussions about state regulation of online sales of this product have been ongoing at the ministerial level for many years, yet a fundamental decision has not been reached.

Amid potential benefits, such as increased tax revenue for the treasury, the prospect of legalizing online alcohol sales continues to raise concerns among government agencies.

The Ministry of Internal Affairs supports its viewpoint with statistical data that reflects the correlation between the number of crimes committed "due to sudden hostility" and alcohol consumption. Additionally, there are fears that minors may be able to order alcohol.

Some officials at the Ministry of Health believe that this could lead to an overall increase in alcohol consumption in Russia.

However, reality presents a different picture: as is well known, alcohol can currently be easily purchased on almost every corner and in any quantity, yet the volume of alcohol consumption in Russia has been steadily declining for many years.

Recently, Health Minister Mikhail Murashko provided interesting data: from 2008 to 2021, alcohol consumption fell by a record 43%. In absolute terms, the decline is even more impressive: from 15.7 liters per capita in 2008 to 9 liters in 2021, and less than 8 liters by 2024.

Against this backdrop, Rosstat reports a decrease in morbidity and mortality associated with alcohol consumption, as well as changes in consumption patterns. According to statisticians, Russians are increasingly turning away from vodka, now preferring wine, liqueurs, whiskey, low-alcohol beverages, and beer products.

Recently, interest in alcoholic beverages has noticeably declined among the youth. As reported by RBC Wine, junior researcher Valeria Kondratenko from the Laboratory of Economic and Sociological Research at HSE, more than half of young people under 25 do not consume alcohol at all, which is comparable to the proportion of abstainers among those over 61 years old (52.9%). In contrast, among those aged 26-40 and 41-60, the proportion of abstainers is only about a third—28.6% and 30.7%, respectively.

Surprisingly, there are also opponents of legalizing online alcohol sales within the business community. The Association of Retail Companies (AKORT), which includes several major Russian retailers, many of which hold a leading share in the retail alcohol market, unexpectedly spoke out against it.

A year ago, AKORT's chairman, Igor Karavaev, addressed the Ministry of Industry and Trade with a letter expressing his concern over the very fact of discussing such initiatives. According to him, online alcohol sales remain a "poorly controlled and high-risk channel," and their legalization would pose risks to consumers.

AKORT asserts that adult citizens in Russia already have all the means to purchase alcoholic beverages on their own in regular stores, and that online sales could lead to widespread violations by sellers seeking to increase profits. In addition to selling alcohol to minors, Karavaev points out that the initiative could enable operators to sell counterfeit products and operate outside the cash register, thereby bypassing the EGAIS system.

This position has also raised questions among experts. Specialists argue that despite existing legislation, buying alcohol online is easy at any time, with illegal sellers trading not just in large quantities—the black market is built on all the violations described by AKORT. At the same time, experts agree that the use of modern age verification technologies via biometrics and tracking the sale of any alcohol bottle through EGAIS is essential for ensuring the safety of online alcohol sales.

According to Maxim Chernihivsky, founder of the "Club of Alcohol Market Professionals" and candidate of economic sciences, illegal sellers thrive while the government seeks to regulate sellers operating legally, which significantly skews statistics.

— Until we solve the problem of the massive turnover of illegal alcohol products, which are sold through illegal online stores, people in Russia will continue to be poisoned and die, — Chernihivsky reflects. — For example, in the segment of strong alcohol, essentially vodka, the illegal turnover reaches 26% annually. In natural terms, this amounts to about 200 million liters.

In other segments, the situation appears better; however, the decline in interest from illegal traders in weaker drinks is driven solely by profit motives: the higher the alcohol content, the higher the excise tax and the more expensive it becomes. Consequently, it is more profitable to counterfeit.

Currently, according to Maxim Chernihivsky, there are about three thousand websites operating in the black market that deliver alcohol—sometimes of questionable quality—directly to homes, but consumers often do not consider this.

— The ban on online alcohol sales significantly hinders the growth of the legal Russian alcohol market, which already exists in a "state of tension," — emphasizes the expert.

— Unfortunately, illegal trade and illegal delivery of alcohol exist in the country. According to our data, the volume of this market already amounts to around 100 billion rubles, and it continues to grow, — says Artem Sokolov, president of the Association of Internet Trade Companies (AKIT). — The reason lies in the fact that consumer behavior has changed recently. People are now accustomed to ordering goods for home delivery—everything is delivered practically everywhere. It's simply convenient.

According to Sokolov, 86% of all Russian retail businesses already have their own online sales channels. The market is growing so rapidly that any relatively large retailer who delays organizing deliveries automatically becomes an outsider.

Thus, a customer who goes online to order, for example, champagne for a birthday often does not even realize that online alcohol sales in Russia are completely prohibited. The president of AKIT refers to recently conducted research by VTsIOM, which found that 79% of citizens are unaware of this.

What they receive is largely a matter of luck, as the sales and delivery process is not regulated by anyone. The seller has no responsibility to the buyer since the transaction is outside the legal framework.

Interestingly, to protect themselves from possible poisoning by counterfeit products, experts advise citizens who frequently buy alcohol to use a special mobile application called "Anti-Counterfeit Alcohol," developed by the Federal Service for Alcohol and Tobacco Market Regulation. This app allows users to scan the QR code on the excise label affixed to the bottle to determine whether the product is legal and safe for consumption.

Experts believe that the Ministry of Health's concerns about the potential increase in alcohol consumption due to the market's transition online are unfounded. On one hand, in large cities, purchasing alcohol is not an issue—it is sold practically everywhere. Those planning a big night out typically prepare in advance and stock up on drinks before stores stop selling them.

Moreover, such alcohol enthusiasts often prefer cheaper and simpler drinks. There is no incentive to pay extra for courier services when buying inexpensive beverages.

On the other hand, in smaller towns, far from major cities, the situation is quite the opposite. According to statistical data, out of the 160,000 populated areas in Russia, 70,000 do not even have legal alcohol stores—far from all merchants are willing to open wine shops there, as it is often unprofitable. Just the licensing fee can amount to 65,000 rubles per year. Furthermore, there is no guarantee that the number of customers will be sufficient to sustain a business. Consequently, home distilling flourishes in the Russian hinterland.

Experts claim that online sales could address some of the market's problems