Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 05/25/2012

State Will Require Labels on Alcohol

Labels on beer, wine and liquor will soon warn potential buyers in large print about the dangers of imbibing in a further blow to the industry’s sales as part of President Dmitry Medvedev’s drive for healthier lifestyles, the government said Thursday.

Officials will also weigh the pros and cons of creating a state-run monopoly on the $52 billion market in a report that will be submitted to the president in the first quarter of next year, according to a set of measures released Thursday.

The measures also require more sophisticated excise stamps on bottles and ban retail sales in certain locations.

If approved, they will likely affect U.S. and European imports, which are estimated to account for 10 percent of the market, and foreign brewers operating in the country, such as Carlsberg.

The restrictions, which have been discussed throughout this year, would follow the tripling of excise duties on beer slated to start next month. The State Duma voted to raise the duties after Medvedev lashed out at the “colossal” alcohol consumption rates earlier this year.

Government agencies must assemble a set of standards for alcoholic beverages, including beer, and submit them to the Cabinet in the first quarter of next year, according to a list of measures that Prime Minister Vladimir Putin signed Monday. Under the standards, warnings about alcohol’s harmful effects must take up 20 percent of the size of the label, Interfax reported.

Currently, hard liquor labels say in fine print that, “Alcohol is not for children and teenagers up to age 18, pregnant and nursing women, or for those with diseases of the central nervous system, kidneys, liver and other digestive organs.” It was unclear Thursday whether the wording would change under the new standards.

Beer bottles currently carry no health warning.

A spokeswoman for the country’s largest brewer Baltika, part of Denmark-based Carlsberg Group, declined to appraise the potential effects of the government’s labeling proposal.

“The measure is still at the formulation stage and much may change in the process of discussions,” the spokeswoman, Tatyana Antonchik, said by e-mail from St. Petersburg.

A market expert dismissed the possibility that larger warnings on alcohol labels could affect the industry’s sales.

“People buy alcohol and tobacco to enjoy it, regardless of the drawings on them,” said Vadim Drobiz, director of the Center for Research of Federal and Regional Alcohol Markets. “Let it be 30 percent — it won’t scare anyone away.”

Higher excise duties appear to be making a difference.

Carlsberg, the world’s fourth-largest brewer, on Thursday raised its full-year operating profit forecast by 3 percent to $1.8 billion after Russian distributors increased inventory ahead of the jump in beer excise duty. The tax increase is causing Russian distributors to bring forward purchases, though it will have the opposite effect on sales in the first quarter of 2010, it said.





This article has no comments.

Be the first to leave a comment


Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook



Also in Business

Protest and Chaos Seen in Kudrin-Ordered Study

Continued protests in Russia will likely lead to a violent backlash or chaotic changes in the government, according to a new study ordered by former Finance Minister Alexei Kudrin from the same think tank that predicted the street protests months before they began.

Initiative Brings Khamatova Joy and Frustration

The Soviet maxim "initiative is punishable" is only half true for actress Chulpan Khamatova.

Medvedev Divides the Burden Amongst His Deputies

Prime Minister Dmitry Medvedev on Thursday allocated responsibilities between his deputies, saying solving all the issues on his own would be too great a burden.

Rotenberg Gets Road Contracts by Decree

Before leaving the Kremlin, former president and current Prime Minister Dmitry Medvedev gave Arkady Rotenberg's Mostotrest an extravagant gift of several tens of billions of rubles' worth of contracts for road construction in Moscow without competition.

Luxury Hotels Compete to Raise Service

In 2007-10, the Radisson Royal Hotel, Moscow (formerly the Hotel Ukraina) underwent a $300 million transformation from Soviet behemoth to internationally branded luxury hotel. Now the hotel is rebuilding its training system to bring customer service up to world-class levels, with a "Russian twist."

Mid-Level Ready to Take In Tourists

Tourism industry website TripAdvisor recently ranked Moscow fourth on its list of "15 destinations on the rise," and the Moscow government will invest $11 million into developing tourism in the city this year. The capital is also undergoing a massive beautification project to increase the total area of city parks fivefold in the next five years.



print


Comments

This article has no comments.

Be the first to leave a comment





Most Read
MarketGid