Union of Russian Brewers: beer prices will rise by 15 percent
Photo: Elena Afonina / TASS
The Union of Russian Brewers (PSA) warned of a 15 percent rise in beer prices due to the introduction of mandatory labeling, Vedomosti writes. The organization stated this in an appeal to the Ministry of Industry and Trade. The PSA invited the department to reconsider the timing and feasibility of introducing this measure.
From September 1, 2022, datamatrix codes will begin to be applied to specialized packaging (for example, beer kegs), and from December 1, the marking will appear on consumer packaging (bottle or can). The brewers say the new requirements will cost them dearly. For example, the purchase of the necessary equipment for marking and metering devices for codes for a large regional plant will take at least 60-80 million rubles. According to the PSA, additional costs for one bottle will be up to 2 rubles.
Because of this, selling prices will increase by 3-4 percent, and taking into account trade margins and additional trade costs for processing codes, the cost of products for the end consumer will increase by at least 15 percent. Since the purchasing power in Russia is decreasing, due to the rise in price, residents will begin to consume less high-quality domestically produced beverages. In addition, the new measure could spur the growth of the illegal alcohol market. This means that the funds will remain in the shadow sphere and go past the budget.
Brewers also noticed that this industry has a high productivity (up to 60 thousand bottles per hour). From a technical point of view, such prompt application of codes to consumer containers with the subsequent formation of group codes for product packaging is impossible. The introduction of the requirement can lead to large-scale equipment failures, production interruptions, and, as a result, large monetary losses for manufacturers – one day of downtime can cost up to 30 million rubles.
Earlier in December, representatives of the Beer Manufacturers Association (BIE) also said that mandatory beverage labeling would cause an industry collapse, accompanied by shortages, price increases and supply disruptions. Market participants also noted that the timing of the implementation of the measure is unrealistic – in nine months the industry will not have time to supply equipment, while additional time will be required for its installation and testing.
