The Economic Development and Trade Ministry of Ukraine has proposed bottom wholesale and retail prices of vodka and liquors by 10.7 percent, whiskey, rum and gin – by 7.3 percent, cognac – by 9.1-9.5 percent, and win – by 7.4-10.2 percent.
“From the moment the bottom prices were reviewed, there was an increase in component prices, in particular: alcohol (data of state-owned enterprise Ukrspyrt: the average price in September 2018 was Hr 311.07 per decaliter, the forecast price for 2019 is Hr 335.92 per decaliter, an increase by 8 percent), packaging, components, energy, the minimum and average wages of workers in enterprises in this area increased 11 percent and 25 percent respectively (data from the Ukrvodka Association). Therefore, today the bottom prices do not correspond to the real costs of business entities on the production and sale of alcoholic beverages and need to be corrected,” the ministry said in the explanatory memorandum to the draft resolution, posted on the ministry’s website.
According to the document, on May 27, 2019 at a meeting under lead by First Deputy Prime Minister and Economic Development and Trade Minister Stepan Kubiv, an open discussion was held with the participation of players of the alcoholic beverages market and their associations on the issue of price review for alcoholic beverages.
The size of the bottom prices for alcoholic beverages provided for in the draft resolution is determined by the planned indicators for 2019.
The Economic Development and Trade Ministry of reminded that the last time the bottom prices for alcohol were raised in September 2018.
