FAS GAVE AN EXPRESS-ANALYSIS OF THE STATE OF COMPETITION IN THE MARKET OF ALCOHOL PRODUCTS

Factors of significant influence upon operations of bona fide market participants include: counterfeit, regional protectionism, various excises within EAEU, tight advertising restrictions

Deputy Head of FAS Fiscal Control Department, Natalia Isaeva, presented an opinion of the antimonopoly authority regarding the state on competition on the market of alcohol products at the XIV Alco Congress and the V Wine Forum.

She said: "FAS competences include analysis of the state of competition on various markets, and today we will consider alcohol markets. Based on the data presented by Rosalcoholregulirovanie [the Federal Service for Alcohol Market Regulation], FAS promptly made an express-analysis for 2018, which showed that the market is competitive, but a number of problems remains that must be resolved”.

Around 960 m dL of alcohol products were produced in 2018, of which: 71.15% beer, 8.19% - vodka, 4.47% - wine and 16.19% - other alcohol drinks.

"We see that in comparison with the last year there is a slight but nevertheless reduction of production volumes. At the same time, the scope of supplies to the wholesale market in Russia increased in 2018 in comparison with the preceding year by 1 m dL to 995.51 m, indicating that the import share has increased", clarified Natalia Isaeva.

Also according to the data obtained from Rosalcoholregulirovanie, last year around 1.5 m dL products were withdrawn from illegal circulation (ethanol – 27.4% and alcohol products – 72.6%), operations of 179 clandestine manufactures were suppressed.

"We believe that factors of significant influence upon operations of fair market participants: counterfeit product circulation, regional protectionism, various excises within EAEU, tight advertising restrictions that curtail promotion and entry of new participants to the market», informed Natalia Isaeva.

To resolve the issue, FAS proposes applying measures for separate regulation for different types of alcohol products and harmonizing EAEU rates, and study expediency of introducing minimum retail prices for beer and wine.

She emphasized: “Renewing a dialogue between the authorities and business in the format of a Working Group at the Ministry of Finances of the Russian Federation is essential”.