OREANDA-NEWS. April 09, 2012. Belarus insists on excluding beer from the Customs Union’s Regulation on safety of alcohol products, Yevgeni Mariushich of Belarus’ state-run food industries concern Belgospischeprom told reporters following another round of consultations between Belarus, Russia and Kazakhstan in Minsk.

Belarus repeatedly raised its voice against including beer into the Customs Union’s Regulation on safety of alcohol products, which is now being adjusted by CU participant states.

Belarusian brewers believe beer should be excluded from the regulation as the brewing technology has little in common with distillation. As a product of fermentation, beer is less prone to counterfeiting than traditional alcohol products, and for that reason it must be excluded from the Regulation.

Furthermore, Belarus objects to another clause of the Customs Union’s Regulation on safety of alcohol products, which prohibits sales of beer in PAT bottles.

According to Mariushich, 80% of Belarus’ beer output is available in PAT bottles. If the ban is sustained, Belarusian breweries will have to invest around USD 45 million in retooling to switch over to glass bottles.

Moreover, it will take another USD 50 million to retool local glass industries to produce new kinds of glass bottles for the brewing sector. Before the glass industries have been retooled (which will take up to 3 years), Belarus will have to spend over USD 100 million per year to import glass beer bottles.

Belarus believes beer should be excluded from the regulation as the brewing technology has little in common with distillation. As a product of fermentation, beer is less prone to counterfeiting than traditional alcohol products, and for that reason it must be excluded from the Regulation.

If classified as an alcoholic beverage, beer will be subject to a different set of license agreements, which will put pressure on retailers and producers, and will result in reducing sales. In the end, the beer segment of the market will be taken over by stronger alcoholic beverages.