Alco-Pops Face End Over Russian Tax Labels

© RIA Novosti . Pavel Lisitsyn / Go to the mediabankAlco-Pops Face End Over Russian Tax Labels
Alco-Pops Face End Over Russian Tax Labels    - Sputnik International
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Russian makers of low alcohol beverages have suspended production due to a lack of new excise labels from the Federal Service for Alcohol Market Regulation, Business FM radio station reported.

Russian makers of low alcohol beverages have suspended production due to a lack of new excise labels from the Federal Service for Alcohol Market Regulation, Business FM radio station reported.

The Russian government ordered all low-alcohol canned beverages except beer, such as "alco-pop" type cocktails, an with alcohol content of under nine degrees to be marked with excise labels from the start of this year. Beverage makers complain they can't get the new excise labels, so they have had to suspend production or risk breaking the law.

"We are ready to buy (excise labels) and paste them, but there are no labels. It is a problem caused by the state agencies. We will not be able to satisfy consumers with our products from mid-March," Vladimir Yefremov, a sales manager for Russia's Ochakovo brewery, told the radio station.

Other manufacturers say stocks could run out by March.

The Alcohol Market Regulation service's Alexander Kulikov said the agency had received orders for the labels and the issue would be resolved.

Alcohol market analyst Vadim Drobiz said the move might prompt some firms to leave the market.

"It is obvious that the first quarter (of 2012) will be a dead season for low-alcohol liquor makers. The government failed to publish several documents in time and the whole industry is not ready yet. Some producers will leave (the market)," Drobiz said.

 

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