Russian Government Considers Wholesale Price Floor for Vodka
OREANDA-NEWS. May 24, 2010. The Russian government is considering a wholesale price floor for vodka of RUB70 per 0.5 liter bottle, beginning 1 July 2010. The minimum retail vodka price was set at RUB89 per 0.5 liter bottle, effective 1 January 2010.
View: The implementation of the wholesale vodka price floor is designed to prevent retailers from buying illegal vodka (which would be cheaper than 70 RUB per 0.5l bottle), thereby reducing the share of illegal market in vodka sales. The news is positive for CEDC, Synergy and other legal vodka producers and will likely allow companies to establish better margins on cheap/generic vodka.
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