01 Feb 2011

Cognac has been given a minimum price of Federal service for regulation of Russian alcohol market

 
 
Half-litre of cognac now cannot cost less than 193 roubles and the same volume of vodka less than 98 roubles. The orders establishing floor prices for these drinks have come into force the 1 of January 2011. Thus, the state deprives the main dignity of forged production – the low price.

Certainly, shop sheles will not be crammed with the cognac on a floor prices.

Introduction of floor prices does not give a guarantee, that all production will be only genuine and qualitative. But now it will be more reasonable to buy normal cognac, than forged if they cost equally.

“About 42-45 % of counterfeits are in the market of cognac now” – according to the information of director of the Center of research of the federal and regional markets of alcohol (ЦИФРРА) Vadim Drobiz.

After introduction of floor prices about 7-10 % of illegal cognac should disappear from shops. More often grapes are not used for the production of the cognac, but spirit, water and flavors. The actual floor price of the cognac made from the grapes fluctuates within the limits of 220-230 roubles.

The determined floor price means, that the raw products for wine-making can be delivered from abroad and the cognac can cost 193 roubles. Those, to whom cognac now becomes inaccessible, as Vadim Drobiz says, can pass to cheaper alcohol, for example vodka. Since the 1st January 2011 its floor price is equaled to 98 roubles. But it hardly means, that all alcohol in shops now will cost more expensive, assures Vadim Drobiz.

In spite of this order the qualitative drinks have higher prices than a floor price established by the Federal service for regulation of alcohol market. However some illegal manufacturers nevertheless should leave the market because of noncompetitiveness or pass in the legal segment of the market.

By the way: The consumption of cognac in Russia is estimated by Center of research of the federal and regional markets of alcohol (ЦИФРРА) at 1,1 million liters yearly. About 900.000 liters ot them are produced in Russia and 200.000 liters are imported from abroad. The main suppliers are France, Armenia and Ukraine.

Source – rg.ru