The Kyiv Post welcomes feedback about our new website and we stand ready to fix any problems users might encounter in our test phase. Contact us at: or +38-044-591-3344. Thank you!

Share Tweet Pocket Add to Bookmarks
You're reading: Ukrpyvo: Ukrainian breweries cut domestic beer sales by 2%

Ukrainian breweries in January-July 2012 sold 172.8 million decaliters (dal) of beer inside the country, which is 2% down on the same period of 2011.

According to the Ukrpyvo industry organization, the main reasons for
the continued decline on the market are fiscal pressure on the industry
and a forced increase in beer prices due to the rise in the cost of raw
materials, energy and fuel.

According to the organization, the average retail price of beer
(including the HoReCa segment) in the period increased by 16.7%, to Hr
14.7 per liter.

At the same time, beer imports to Ukraine in January-June 2012
totaled 2.4 million dal, worth $23.3 million, which is 50% up from 2011
in natural terms and 52.3% up in monetary terms.

The largest beer importers to Ukraine are Russia, Belgium, the Netherlands and the Czech Republic, said Ukrpyvo.

“The situation in the brewing industry continues to deteriorate.
Despite Euro 2012, as well as a very favorable season for sales, the
industry failed to stop the decline on the market, which has continued
for the fifth year in a row. In this situation, the industry needs a
balanced position from the government, transparent rules of market
regulation, and a long-term and predictable state policy,” Ukrpyvo
Director General Halyna Korenkova said.

According to the report, Ukrainian brewers expressed concern
regarding the legislative initiatives of some MPs to increase excise
duties by more than 11% from January 1, 2013.

“The Tax Code foresees the indexation of excise duties according to
inflation, i.e. to Hr 0.87 per liter of beer. But the increase in
excise duties, exceeding this figure, directly violates existing laws.
The explanations that revenues to the national budget will increase due
to this do not hold water,” she said.

As reported, the Verkhovna Rada on July 3 registered a bill, whose
author, the chairman of the parliamentary committee on the financial,
banking, tax and customs policy, Vitaliy Khomutynnyk (the Regions
Party), proposed to increase excise duties on beer, spirit and alcoholic
drinks by 11%.

In particular, the document foresees an increase in excise duty on
beer from the current Hr 0.81 per liter to Hr 0.90 per liter, wine –
from Hr 2.33 per liter to Hr 2.59 per liter, sparkling wine – from Hr
3.38 per liter to Hr 3.76 per liter, cider – from Hr 0.46 per liter
to Hr 0.51 per liter, and spirit – from Hr 45.87 per liter to Hr
51.01 per liter.

According to the State Statistics Service, Ukraine in January-July
2012 produced 190 million dal of beer, which is 0.7% up from the same
period last year. In July, beer production in Ukraine decreased by 0.6%,
to 36 million dal.

Found a spelling error? Let us know – highlight it and press Ctrl + Enter.


Add comment

Sorry, you must be logged in to post a comment.
More in this section

Add a picture
Choose file
Add a quote

Are you sure you want to delete your comment?


Are you sure you want to delete all user's comments?


Are you sure you want to unapprove user's comment?


Are you sure you want to move to spam user's comment?


Are you sure you want to move to trash user's comment?

Spelling error report

The following text will be sent to our editors: