Russian vodka pricing proposal aims to lift minimums in 2024
Russian alcohol manufacturers are urging the government to raise the minimum price of vodka by about 7 percent, setting a new floor at 301 rubles for a 0.5 liter bottle in retail. The appeal, reported by Kommersant and attributed to the Association of Alcohol Producers, was sent to Anton Siluanov, the head of the Ministry of Finance of the Russian Federation.
The industry calls for a stepped increase in price marks across segments. The proposal suggests lifting the wholesale minimum from 238 rubles to 253 rubles, and the retail minimum from 281 rubles to 301 rubles for a 0.5 liter bottle.
Producers justify the move with a rise in excise taxes set to take effect in 2024, which will increase by 5 percent to 128.6 rubles per 0.5 liter bottle. They also point to higher costs tied to the devaluation of imported caps, packaging materials, and containers, alongside growing logistics expenses.
Industry analysts warn that reaching a 300 ruble threshold could affect consumer behavior, potentially slowing demand and dampening market activity for some segments.
The Ministry of Finance indicated that the proposal is under review. Two Kommersant industry sources suggested that the alcohol producers’ stance may receive support from officials.
Earlier reports from Rosalkogoltabakcontrol noted a decline in the production of strong alcohol within Russia. At the same time, the country has seen a sharp increase in beer imports in recent months.