Russia to raise minimum vodka prices
FMCG SUPPLIER NEWS
Fin24/ Reuters - Dec 3rd, 08:16
Moscow - Russia plans to raise minimum vodka prices next year as it seeks to reduce consumption of alcohol, despite risks that drinkers will resort instead to cheaper illegal liquor.
Alcoholism is estimated to contribute to 30% of deaths in the nation of 143 million, according to medical surveys.
Russia's government imposed minimum prices for strong spirits, such as vodka and brandy, in 2010 and has been raising the bar annually to factor in increases in excise taxes and inflation.
According to a draft decree published on a government web site the cheapest half-litre bottle of vodka will cost 199 roubles (about $6) from 1 January, up 17%.
The price will rise further to about $6.6 from 1 August, bringing total increases next year to almost 30% compared to this year.
While higher prices have already dented store sales of vodka, according to official figures, experts warn that higher prices will lead people to drink more bootleg liquor - sometimes fatal if not distilled properly.
Russia has been tightening regulations for producers of vodka and beer, such as Russia's Synergy, Poland's CEDC and Danish brewer Carlsberg.
It has in recent years banned alcohol advertising, raised excise taxes, restricted sales after 23:00 and banned sales of alcohol, including beer, from kiosks.
Lawmakers are now considering raising the minimum drinking age to 21 from 18.
From Fin24.com
Related News
Johnnie Walker maker steps further into Africa
05/11/2013 - 08:17
London - Diageo, the world's biggest spirits group which has a presence in SA, should see sales growth in Africa accelerate as it expands into new markets like Ethiopia and Angola and as rising incomes enable traditional beer drinkers to try spirits, it has said
Carbon footprints for five beverage categories released by BIER
24/05/2013 - 15:37
n an effort to accelerate understanding of beverage sector impacts on climate change and identify reduction priorities for greenhouse gas emissions, the Beverage Industry Environmental Roundtable (BIER) has published its research on carbon footprints for five beverage categories, including beer, bottled water, carbonated soft drink, spirits and wine.
How Lenovo is setting itself apart
23/05/2013 - 15:05
Lenovo Group Ltd’s bold acquisitions in its flagship PC business, a foray into mobile gadgets, and a relatively light debt load are setting it apart from PC rivals as industry shipments take their steepest fall in decades.
Anheuser-Busch abandons plans to buy Budvar
20/05/2013 - 10:33
Prague - Brewing giant Anheuser-Busch InBev says it no longer has plans to acquire Czech brewer Budejovicky Budvar, with whom it has been fighting a long legal battle over the use of the “Budweiser” brand.
Germany key to Europe's flagging spirits volumes
30/04/2013 - 08:12
Not only is Germany forming a last line of defence against the euro’s implosion, the land of steins and beer kellers also offers fertile ground to distillers foraging for sales in Western Europe’s withered landscape.
