Whose interests are protected by the minimum retail prices for alcohol

Чьи интересы защищают минимальные розничные цены на алкоголь

From October 2, the Cabinet increased the minimum wholesale release and retail prices on alcoholic beverages.

This previous increase was in September 2017, but in the meantime the market situation has changed markedly and the government had to make adjustments. In particular, the minimum retail price of vodka increased based on 1 liter of pure alcohol 12.4 % (or UAH 49: 24 describes), up to UAH 447.

Thus, the minimum retail price of a bottle of vodka in capacity of 0,5 l is 89,4 UAH (previously — UAH 79,55). Prices on natural wines increased by 13.5 % to 42 UAH for a bottle of 0.7 l (previously 37 UAH), on fortified wine and vermouth by 8.9 % to 49 UAH (previously — UAH 45), and champagne for a bottle of 0,7 l — 12,4% to 89 UAH (previously — UAH 79,19). The minimum price of half-liter bottle of three-star cognac grew by 7.4% and now amounts to UAH 128,3 (formerly 119,46 UAH), four — 139,3 UAH (previously — UAH 129,03), five of 151.7 UAH (previously — UAH 138,5).

Many Ukrainians don’t understand what purpose it is done and whose interests actually protects this pricing policy. To understand what sets minimum prices for alcohol and who benefits from it, contact an expert in the market.

Чьи интересы защищают минимальные розничные цены на алкоголь



“Fixing mechanism government minimum price acts to protect the legal market of alcoholic products and, consequently, the fight against unscrupulous manufacturers of poor quality or surrogacy. Indeed, in accordance with the legislation of Ukraine, for the manufacture of high-quality alcoholic beverages, there is a certain minimum necessary amount of the unit cost of finished products,” — said General Director of “Trading house “Inkerman” Anna gorkun.

“The availability of the store of alcoholic beverage, the retail price of which is less than the minimum indicative prices suggests that the producer either manufactures a product that does not match the quality of even the minimum statutory requirements, and therefore may be unsafe to use, or violates the commercial and tax legislation. Simply put, this drink is a counterfeit or even fake.

I note that state regulation of minimum prices on alcohol initially won not even a law-maker, and the average consumer. After all for anybody not a secret that the ever-declining purchasing power of the population of Ukraine is pushing people to choose the product primarily based on its price. And, unfortunately, the buyer looks for the second turn.

This is easily demonstrated by a simple example. Suppose there are two producer of wine. One sells it for 42 UAH per bottle, that is, at the lowest possible price taking into account production and tax expenditures, and the second for 38 UAH. Thus, the second producer is clearly not hesitate to offer the consumer a cheaper but low-quality or illegal product. Given the General trend on the market first will sell less and the second more, but only up until the price of the product both companies are aligned, and consumers will not be a question of choice between the two products at the same price. The result leveled the first factor that influenced the choice of goods. The second and most important factor is the quality of the wine. We are sure that, comparing the two wines in the same price category, the user will be able to understand what the product is really high quality, and which is at least serious doubt,” said Anna gorkun.

We add that the richest experience of the oldest in Ukraine the manufacturer of the wine can serve as an example of how to overcome obstacles, while only improving the quality of their products. In particular, a year after the annexation of the Crimea, in 2015, “Trading house “Inkerman” restored its production in the new facilities and even replenished the state budget by more than 25 million UAH. Moreover, the General crisis of the industry has not prevented the wines “Inkerman” to hold the position and remain market leaders. So, for 2018 produced more than 5 million bottles of still and sparkling wines, in this case, before the end of the year is expected to launch on the market several new lines.

Чьи интересы защищают минимальные розничные цены на алкоголь