OREANDA-NEWS Alcohol in Russian stores will not rise in price until March 2024. The owner of the Kaluga distillery "Kristall" (KLVZ) named the timing of changes in alcohol prices Pavel Pobedkin, his words are quoted by RIA Novosti.

According to the expert, despite warnings from distributors and manufacturers about the upcoming price increase, the cost of alcohol in retail chains will not rise until spring. Manufacturers tend to ship products released before the New Year so that retailers can sell them at the old price.

"Every year we have an increase in the excise tax, and this, in turn, adjusts the price model for each enterprise. In addition, in the fourth quarter of 2023, there was an increase in the price of alcohol. Plus, components are becoming more expensive. Therefore, every year after January 1, companies raise prices from 5 to 10 percent, depending on the position... This year, the networks were notified that they would not accept price increases until March, that is, they would work on old drains," Pobedkin assessed the situation.

Earlier, Ladoga notified its partners about the indexation of beverage prices by three to five percent. Further price changes will depend on a number of micro and macroeconomic factors and legislative initiatives to regulate the alcohol market, the company noted. Peter Romanishin, CEO of the Fanagoria winery, warned of a 7-8 percent price increase due to increased excise taxes and inflation.

"The increase in prices in 2024 may be caused by many factors, including an increase in the cost of borrowed funds in Russia, logistics and personnel costs, an increase in duties, etc. Because of them, an increase of up to 10 percent can be expected," Simple group noted.

Earlier, market participants warned that in 2024, prices for strong alcoholic beverages in Russia will increase by an average of 7-10 percent. The reasons for such dynamics were called an increase in excise tax rates, an increase in the cost of alcohol, materials and logistics services. Representatives of the Alcoholic Siberian Group (ASG), which produces Belaya Beryozka, Sibbitter and Five Lakes, as well as Ladoga (Tsarskaya, Barrister, Fowler's) have already notified retailers of plans to raise prices for strong types of alcohol by 10 percent from the beginning of next year.