Close Menu
News

Russians fear further beer tax

Russian president Vladimir Putin has raised the prospect of a further increase in beer taxes as part of his government’s long-running campaign to curb drinking.

The reaction from the markets was swift. Carlsberg fell 5.4%, SABMiller ended the day down 1%. Anheuser-Busch InBev (which was also reported second-quarter earnings this week) dropped 3.2%.

“Beer alcoholism is a serious problem … We could raise beer taxes further,” Putin said at a forum of pro-Kremlin youth groups.

At the beginning of 2012 Russian taxes on beer rose by 20% and according to a Finance Ministry plan, approved late in 2011, they will rise by a further 25% in 2013 and 20% in 2014.

Partner Content

Meeting with Russian youth on Tuesday, the president signaled that the state might crack down further on Russian beer consumption – and the markets did the rest.

Putin’s comments were not as harsh as the market drops would seem to suggest.

Producers are also about to get hit by a new federal law that will forbid retail beer sales from 11pm to 8am beginning January 1 – a rude awakening for those who enjoy Russia’s outdoor drinking culture.

Leave a Reply

Your email address will not be published. Required fields are marked *

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No

The Drinks Business
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.