Beer is cheaper than water: the Brewers’ Union is sounding the alarm

UNITED STATES (OBSERVATORY NEWS) — The Union of Russian producers of beer-non-alcoholic products (Union of Brewers) in its appeal to the head of the Ministry of Finance, Anton Siluanov, asks to consider the possibility of “speedy” establishment of minimum retail prices for beer.

“The Union of Russian Brewers considers it abnormal when a bottle of beer is sold cheaper than a bottle of regular drinking water in legal retail. This will discredit beer in the eyes of the consumer,” the letter said.

The issue of introducing minimum retail prices for beer is one of the points of disagreement of large brewing companies (Baltika, AB InBev and Heineken) with members of the Brewers Union. As a result, the Big Three brewing companies announced their withdrawal from the union.

The letter notes that the market is currently oversaturated with the so-called “promotional” beer “at critically low dumping prices that do not correspond to production costs and tax payments.”

As a result, legal manufacturers who have installed production volume meters, work in the EGAIS system, pay all taxes and use high-quality natural raw materials, are being forced out of the market.

According to the brewers, the situation is complicated by large retail chains, which “by dumping destroy the sales channels of regional beer producers, forcing local brewers to reduce the price of their products to the cost level.”

The Brewers’ Union notes that the introduction of the MRC will provide an opportunity to reduce the volume of the illegal beer market and create equal competitive conditions for legal companies.

The measure will also help to reduce the consumption of low-quality alcohol, while allowing to remove the risks of the spread of pseudo-drinks.

The letter does not say what the minimum retail price for beer should be.


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