You're reading: Cabinet ups minimum retail prices of vodka and brandy

The Ukrainian government has decided to increase the minimum retail price of vodka by 15.3% and introduce this increase in two stages: the prices will go up by 9.2% in the next few days, and by another 5.6% from March 1, 2013. 

The floor price of a 0.5-liter bottle of vodka in retail outlets will grow from Hr 26.10 to Hr 28.50, and then by 30.1% from March 1, 2013, reads cabinet resolution No. 1017 dated November 7, 2012, which was published on Thursday.

The resolution foresees an increase in the minimum wholesale price of vodka and alcoholic beverages (spirits) from the current Hr 88.50 per liter of 100% alcohol by volume to Hr 96.18, and further to Hr 101.60 from March 1, 2013. The minimum price in retail outlets will grow from Hr 130.50 to Hr 142.50, and then to Hr 150.50 per liter of 100% alcohol by volume.

The same increase – of 15.3% – will also be introduced in the minimum price of other fermented beverages (cider, perry, etc.). According to the resolution, the wholesale price of such beverages will grow from Hr 96.24 per liter of 100% alcohol by volume to Hr 103, and further to Hr 110.60 from March 1, 2014. The minimum retail prices of the beverages will increase from Hr 142 to Hr 154 at first, and then to Hr 163.80 per liter of 100% alcohol by volume.

The government also decided to raise the minimum prices of brandy, whereas prior to that Agricultural Policy and Food Minister Mykola Prysiazhniuk announced there would be no changes in brandy prices. According to the cabinet resolution, the minimum wholesale prices of brandy in the next few days will increase by 2.6-6.2%, while retail prices will go up by 17.6-20.2%.

In particular, the minimum retail price of a 0.5-liter bottle of 40% three-star brandy was increased from Hr 33.08 to Hr 38.90, that of four-star brandy from Hr 37.16 to Hr 43.90, and five-star brandy from Hr 41.10 to Hr 49.40.

Under the resolution, the minimum wholesale prices of three-star brandy will go up from the current Hr 121.34 to Hr 124.50 per liter of 100% alcohol by volume, the minimum retail prices of three-star brandy will grow from Hr 165.40 to Hr 194.50 per liter of 100% alcohol by volume. The minimum prices of four-star brandy will increase from Hr 134.30 to Hr 140.50 (wholesale) and from Hr 185.80 to Hr 219.50 (retail) per liter of 100% alcohol by volume. The minimum prices of five-star brandy will increase from Hr 148.91 to Hr 158.10 (wholesale) and from Hr 205.50 to Hr 247 (retail) per liter of 100% alcohol by volume.

The floor prices of wine remained unchanged – Hr 18-26 per 0.7-liter bottle in retail outlets.

The floor prices of alcohol were reintroduced late in October 2008 at the request of alcohol producers. The last time when the prices were revised by the government was in August 2011.