Russian Heavy Taxes on Beer Restrained Market Growth, Says Euromonitor International
18 Oct 2012 • by Natalie Aster
Legislative measures lead to contradictory results, depending on factors such as size and momentum of the market. However, the key duality is observed in the trend of gradual weakening of the protectionist policy in emerging economies under the pressure of free trade agreements, while mature economies increasingly opt for a more hard line approach by putting in place non-tariff restrictions, such as minimum pricing and advertising and distribution constraints.
As with the extreme example of Russia during the “dry law”, rigid regulations have proved to have counter effects, and instead of decreasing consumption, they can lead to dangerous practices as alcohol production migrates to the black market economy, thus leaving a dent in the state budget.
While heavy taxes on beer in Russia have killed what used to be a booming market, China is considering lowering taxes in order to prevent tax evasion.
Lack of limits on imports for personal consumption in the Scandinavian countries shift purchases to the lower taxed Germany and Estonia, causing fiscal losses.
The new report "Legislation in Alcoholic Drinks: Restrictive Practices VS Free-Trade Opportunities" by Euromonitor International states that the implementation of minimal pricing will leave huge profits with the big retailers, but on the other hand this could revive specialists’ trade as supermarkets would lose their main competitive advantage – lower prices.
Legislation in Alcoholic Drinks: Restrictive Practices VS Free-Trade Opportunities
Published: September, 2012
Price: US$ 2.000,00
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- Get a detailed picture of the Alcoholic Drinks market;
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More information can be found in the report “Legislation in Alcoholic Drinks: Restrictive Practices VS Free-Trade Opportunities” by Euromonitor International.
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