Imported Beer Share on Belarusian Market Will Drop to 5% in Five Years
OREANDA-NEWS. August 20, 2010. There are plans to reduce beer import share on the Belarusian market from 30% to 5% within five years, chairman of the Belarusian state food industry concern Ivan Danchenko said at a session of the Council of Ministers.
Speaking about the home market, the official said that Belarusian breweries are fighting for their place on the retail market. “Unfortunately, the fight against imported beer forces the breweries to fight for their place on the retail market, to reduce prices, to pay for all kinds of marketing services. We fight so much that our business is unprofitable,” said Ivan Danchenko.
Heineken’s Syabar brewery is particularly loss-making due to the company’s strategy of winning the market at the expense of profits. “I think we should put the operation of all breweries on the home market into order,” he said.
Ivan Danchenko explained that the Trade Ministry suggests limiting earnings of retail outlets to 10% of the price for the goods they sell. A relevant presidential decree has been drafted.
In addition, there are plans to calculate the price for services of retail outlets taking into account economically sound expenses, with the profitability capped at 25%.
“Competition is all well and good, but mayhem in retail chains makes the country lose money,” said Ivan Danchenko.
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