New Year's Eve alcohol supplies in Russia are under threat

RBC: alcohol producers and importers complained about the new system of filing information

store shelves. According to RBC, market participants were unable to cope with the new rules for notification of the beginning of the turnover of alcoholic beverages.

From November 1, 2021, alcohol producers and importers must use the “Universal Transport Module” EGAIS program or the “Unified Portal of State and Municipal Services” system. Previously, in order to start selling new products or to make changes to the documents of goods in circulation, it was necessary to submit information to the Federal Register of Alcoholic Products through the Rosalkogolregulirovanie website. The new system caused difficulties for the participants of the Russian market, and the pre-New Year supplies of new varieties were under threat.

Vyacheslav Mamontov, executive director of the Association of Beer Producers (AB InBev Efes, Carlsberg Group and Heineken), complained about the service. Oraz Durdyev, Director for Legal Affairs and Corporate Relations of AB InBev Efes (brands BUD, Stella Artois, Velkopopovicky Kozel, Corona Extra), agreed with his opinion. He noted that the stable operation of the service has not yet been ensured, and it is no longer possible to submit an application through the old system. Alexey Vorobyov, Director for Corporate Relations at Heineken, emphasized that the program has limited functionality: business cannot introduce new varieties into circulation and refine existing products. Vorobiev considers the updated system unsuitable for the smooth operation of the business.

The representative of the largest producer of sparkling wines “Abrau Dyurso” also complained that the company could not bring new positions to the market. “The problem is complicated by the fact that now is the high New Year's season, and it is becoming critical,” one of the federal retailers told RBC. According to him, the volume of products that did not hit the store shelves is already estimated in “millions of rubles.” Director of the Center for Research on Federal and Regional Alcohol Markets Vadim Drobiz recalled that the New Year holidays are the period of the highest alcohol sales. Compared to other months, the demand for alcoholic beverages from December to January is 20-25 percent higher.

The representative of Rosalkogolregulirovanie, nevertheless, did not see any problems in the operation of the system. He noted that manufacturers and suppliers themselves often make mistakes when filling out notices. Rosalkogolregulirovanie issued additional clarifications for filing notifications and expressed its readiness to advise market participants on each specific case. The agency's assistance has resolved the problems of the alcohol importer MBG. Producers of strong alcohol also managed to overcome difficulties.

Sales of alcohol are growing not only before the New Year, but also on other weekends. The November non-working week was no exception: Russians spent 78.8 percent more money on alcohol between October 28 and November 7, 2021, compared to the same period last year. The highest sales came on October 27th. Presumably, the increased demand is due to the fact that in many cities liquor stores were closed during non-working days.

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