The head of AB InBev Efes saw risks in the growth of counterfeit goods if beer prices were controlled
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President of AB InBev Efes Oraz Durdyev again opposed the introduction of the minimum retail price (MRP) for beer and beer drinks. According to him, the introduction of the MRP will increase the price of beer, which will force consumers to look for cheaper alternatives in the form of illegal products, including strong surrogate alcohol. Mr. Durdyev believes that this will increase the risks of a repetition of the “tragic events of mass poisoning of the population.”
“The MRP, in turn, will limit the ability of legal producers to use a flexible pricing policy. Points of sale will be motivated to work with the illegal segment if an unscrupulous manufacturer provides them with a share of the profit, which can reach up to 50% of the cost of a liter,” he said (quoted from “Interfax”).
According to Oraz Durdyev, the introduction of the MRP will equalize prices for legal and illegal products. He noted that research data on the legal and shadow markets already show an equalization of legal and illegal products in value. “If we talk about the initiative to introduce MRP only in the bottling segment, then the effect will be the same. Already now, the average price of a liter of beer on tap is about 120 rubles, cider – 170 rubles,” he added.
October 19 RBC with reference to the government press service, he reported that the Ministry of Finance has begun to study the appeal of deputies on state regulation of prices for beer, cider, mead and poire (pear cider). Deputies asked the department to introduce control measures over the sale of bottled drinks, up to and including a complete ban. According to their appeal, state regulation will reduce their illegal trade, protect the health of consumers, ensure competition and additional revenue to the budget. Currently, in Russia there is an MRP for alcohol with an alcohol content above 28%, as well as for sparkling wines.
Read more about the market situation in the Kommersant article. “Drinks leak out of cans”.
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