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What kind of alcohol and how much will increase in price from January 1, 2023

Date: February 4, 2023 Time: 05:23:22

Market expert Drobiz explained the increase in the cost of alcohol in Russia

Photo: Nikolai OBEREMCHENKO

Vodka, beer and other adult beverages in Russia are produced by private companies. There is no state monopoly, as there was under the USSR and as there is in some developed countries, for the production of alcohol. But there are strict regulations. Including the control of retail prices.

Thus, from January 1, 2023, the minimum price of sparkling wines, vodka, cognac and brandy will increase. The first will increase in price more significantly – almost one and a half times. But stronger drinks – only 8% (for details, see the table).

As the Ministry of Finance explains, the minimum price is necessary to separate legal producers from “shadow companies”. Generally speaking, if a bottle of alcohol is sold below the minimum price, this means that the manufacturer has not paid the excise duty. There can be no other explanation.

– Several factors affect the cost of production. And general inflation, and the growth of the excise tax rate. Prices for alcohol and packaging are rising, other expenses of producers are growing, – explains Vadim Drobiz, director of the Research Center for Federal and Regional Markets. – At the same time, the indexation of the minimum price of spirits this year is not so significant. Anyone who buys legal products will not switch to substitutes due to the increase in the price of vodka by 20 rubles and cognac by 37 rubles. These are completely different categories of consumers.

According to the expert, the country’s population is now divided into two parts. Approximately 80 million citizens, if they drink, only legal alcohol. And about 20 million people prefer to save money and buy illegal products. The latter is sold under the counter, it costs two to three times cheaper, but people buy it consciously. Although it is not safe for health.

How the minimum cost of different types of alcohol will increase in 2023 (rubles)

Type of alcohol, Was and will be, growth

Champagne 169 239 +41%

Vodka 261 281 +8%

Cognac 480 517 +8%

Brandy 348 375 +8%

According to the Ministry of Finance.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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