16.01.2025, 09:32
Alcohol production in Russia has fallen for the third year in a row
Source: OREANDA-NEWS
OREANDA-NEWS The total alcohol production in Russia in 2024 fell for the third year in a row. This is reported by RBC with reference to data from Rosalokoltabakcontrol (RATK).
The output of alcohol (except beer, beer drinks, cider, poiret and mead) decreased over the year from 191.6 to 188.1 million decaliters (minus 1.8 percent). The production of grape—containing beverages without ethyl alcohol, low-alcohol and fruit alcoholic beverages fell the most - year-on-year, the figures fell by more than half, by 64.8 percent, 56.1 and 50.4 percent, respectively.
RATK experts explain the trend regarding weak alcohol by changing the excise tax calculation procedure and increasing its rate. Unscrupulous producers who mixed alcohol with artificial flavors moved into other categories, such as beer, beer drinks, and cider. In fact, the increase in excise tax has buried the category.
According to Alexander Stavtsev, vice president of the Association of Retail Market Experts, this is not about reducing production, but about normalizing it - in 2022, a shortage of imported alcohol was replaced in Russia, which led to an overstocking of warehouses.
"What was produced in 2022 was a reshuffle in retail, excess inventory. Now no one needs to have them, because credit money is expensive, all the accessories have increased in price, companies are optimizing production for specific market demands and making so many products to sell them and not have too much in stock," he explained.
New minimum retail prices (MRTS) for alcohol with a strength above 28 percent have been in effect in Russia since January 1. Last time, the MPC for strong alcohol was indexed from July 1 last year, when the price for 0.5 liters of vodka rose to 299 from 281 rubles, cognac — to 556 from 517 rubles. Minimum retail prices are called a way to preserve the possibility of receiving taxes and maintain market transparency, and these prices are calculated jointly with the industry.
The output of alcohol (except beer, beer drinks, cider, poiret and mead) decreased over the year from 191.6 to 188.1 million decaliters (minus 1.8 percent). The production of grape—containing beverages without ethyl alcohol, low-alcohol and fruit alcoholic beverages fell the most - year-on-year, the figures fell by more than half, by 64.8 percent, 56.1 and 50.4 percent, respectively.
RATK experts explain the trend regarding weak alcohol by changing the excise tax calculation procedure and increasing its rate. Unscrupulous producers who mixed alcohol with artificial flavors moved into other categories, such as beer, beer drinks, and cider. In fact, the increase in excise tax has buried the category.
According to Alexander Stavtsev, vice president of the Association of Retail Market Experts, this is not about reducing production, but about normalizing it - in 2022, a shortage of imported alcohol was replaced in Russia, which led to an overstocking of warehouses.
"What was produced in 2022 was a reshuffle in retail, excess inventory. Now no one needs to have them, because credit money is expensive, all the accessories have increased in price, companies are optimizing production for specific market demands and making so many products to sell them and not have too much in stock," he explained.
New minimum retail prices (MRTS) for alcohol with a strength above 28 percent have been in effect in Russia since January 1. Last time, the MPC for strong alcohol was indexed from July 1 last year, when the price for 0.5 liters of vodka rose to 299 from 281 rubles, cognac — to 556 from 517 rubles. Minimum retail prices are called a way to preserve the possibility of receiving taxes and maintain market transparency, and these prices are calculated jointly with the industry.
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