Russian alcohol producers propose raising minimum vodka prices by 7% in 2024 - paper

MOSCOW. Oct 12 (Interfax) - Russian alcohol producers association SPAP, which includes Novabev Group , Alcohol Siberian Group, Roust Group and Ladoga, among others, has proposed to the Finance Ministry to raise minimum prices for vodka by 7% as of 2024, national daily Kommersant reported on Thursday, citing a letter sent to Finance Minister Anton Siluanov in September.

In the letter, SPAP proposed raising the minimum factory-gate price to 243 rubles per 0.5-liter bottle from 229 rubles, wholesale price to 253 rubles from 238 rubles and retail price to 301 rubles from 281 rubles.

Production and distribution costs will increase by at least 10% this year and raising the minimum prices will enable distillers to avoid selling at a loss and reducing production, SPAP said. Furthermore, the excise on vodka is set to increase by 5% to 128.60 rubles per 0.5-liter bottle in 2024, the association said.

The Finance Ministry said it is reviewing the SPAP's proposal, while industry sources said the proposal will be approved, the paper said.