No threat of soaring alcohol prices, Khortytsa says

31 March 2008 (09:01)

‘We decided not to raise our prices so as not to hurt the consumers. We keep the prices the same to make sure anyone can afford to buy a perfect quality product. Our assets as well as our flexible pricing policy allow us to reach a compromise with every single customer,’ says Roman Marchenko, the General Director of Khortytsa’s Russian representation.

In the meantime, the government imposed some prohibitive export tax on wheat that came to 40% of the price of a ton of wheat. However, this measure did not succeed in preventing the price increases on the home market. At the same time, the news of the crops growing more expensive and the distilleries’ existing raw stock coming to an end provoked many to think strong drinks prices were bound to soar. Smaller companies felt alarmed, whereas the large ones, especially the brand market leaders, do not appear too worried.

‘At the moment, the major reason for price growth is the increased excise duty, while the more expensive wheat has only influenced the price a little. This last factor will only start affecting the strong drinks prices after a while, as large distilleries still have enough in stock. Smaller companies (some of which have already stopped producing strong drinks) are more likely to be affected right now; as for the rest, their prices will probably only go up when they start making new-season alcohol. But this won’t happen tomorrow,’ Marchenko says.

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