Alcoholic Drinks To Grow Steadily In Belarus Due To Unfavorable Economic Situations- Ken Research

According to a report by World Health Organization on alcohol and health, Belarus, which had hardly appeared at top of any of the global ratings, topped the list of the countries with highest alcohol consumption. For the country, this report has achieved a rather same and the Ministry of Health of the country has denied the findings citing that the methodology used by World Health Organization is wrong. However, their denial does not seem to be justified considering the fact that the figures obtained from other officials of the Belarus tend to match the data released by WHO.

Alcohol remaining a major reason of health problems, crime and suicide in Belarus, the government of the country has banned low-quality alcohol, increased prices of alcohol, and is further planning to increase the legal age of drinking to 21 and increased punishment for drunk driving.

The report titled “Alcoholic Drinks in Belarus” focuses on the alcohol market in Belarus and covers various characteristics of the market like shape and size. The report also lays fort the competitive landscape of the market and gives detailed analysis of key players of the market, their revenues, descriptions and market shares. Also, the report predicts the trajectory the market is expected to take in the near future. Covering the products like high-strength premixes, spirits, beer, perry, wine etc. the report also identifies the sectors that are driving the growth in the market.

In 2016, the sales of the alcoholic drinks, in the volume terms, have continued to decline although at a pace slower than that which was in 2015. But this was not because of excise, which was the main reason for the decline in 2015. This has happened because of the harsh economic conditions in Belarus which resulted in low disposable incomes of the consumers, thereby leading to reduction in demand for alcoholic drinks.

The government of Belarus has kept on regulating the alcoholic drinks market all through 2016. Production quotas have been imposed on wine and spirits to regulate their sales. Introduced in 2008, the Institute of Special Importers is a group of companies that had been approved by the State and have the official permission to import alcohol and alcoholic beverages from outside. All this has resulted in domestic production dominating the sales scenario of the alcohol in Belarus.

It is unlikely that the excise for alcoholic drinks will be increased in 2017 so that the profitability of alcoholic drinks manufacturers increases resulting in the improvement in their financial stability. Moreover, on 15 August 2016, a Presidential Decree was signed by the virtue of which manufacturers of alcoholic drinks could pay excise after their products have been sold rather than paying it right after product has been shipped. The decisions have been taken considering the high debts which have been incurred by alcoholic drinks manufacturers leading them into difficult financial situations.

In the future years, it is expected that there would be minimal decline in sales, in terms of volume. However, the performances of different types of alcoholic drinks would be different. Therefore, it would be interesting to have a picture in mind which could identify which sectors of the market are going to have growth or decline and what would be the expected magnitude of that performance. Cumulatively, the market will grow as time passes but not at a reasonable pace.

Topics Covered in the Report