From January 1, 2022, the prices of domestic and imported alcoholic beverages increased by 5 to 30%. The highest increase was in local alcoholic beverages.

Manufacturers claim that the reasons for the rise in prices are from the increase in the price of energy and packaging materials in foreign markets. While importers say the impact is from the increase in the price of alcoholic beverages by foreign companies, transport tariffs and the 3% increase in excise duty from January 1, 2022.

As they had announced in December last year, the beverage canteen "Gjergj Kastrioti Skënderbeu" from January 1 has increased the prices of alcoholic beverages 30% more than years. Canteen CEO Denis Zhilla says the reasons for the rise in prices are rising prices for energy, fuel, glass, plastic and other packaging materials.

"The price of glass has increased by 20% more than 2020, cardboard and paper materials have increased by 15%, corks and plastics by 10%. Also worrying is the increase in the price of electricity from 15 lek / kwh to 41 lek (including VAT). "In order to mitigate the increase in production costs, it would be necessary for the government to subsidize the increased energy price tariff", claims Mr. Zhilla.

Earlier, the Union of Albanian Producers and the Chamber of Commerce and Industry also demanded compensation for the increase in energy prices for food industry producers connected to the voltage from 35 to 110 kilowatts.

The increase in prices has affected the decline in sales. For the period January-February the company's sales have shrunk 35% compared to years. Other market operators claim that this situation will increase the informality of the alcoholic beverages trade in the country. Informality, especially of brandy trading, continues to be a problem for licensed companies. Due to the stock created for years and informality, the beverage winery "Skënderbeu" this year started production with 20% than 2021.

There was also an increase in prices this year for imported alcoholic beverages. Representatives of the distributor "Agna Group" said that the prices of imported beverages increased 5 to 10% more. According to them, the changes came from price increases by foreign companies and transport, as well as a 3% increase in excise duty.

From January 1, 2022, the amendments to the law "On excises" enter into force, which provide for indexation every 2 years to the official inflation rate for the previous 2 years announced by INSTAT, with the exception of tobacco and its by-products, to which excise is applied. according to the specific calendar. The changes determined that for 2022 excise is indexed to the extent of the official inflation rate of 2020 and the 9-month period of 2021.

For January 2022, domestic production has increased 17% more than 2021, while it is lower than the pre-crisis period. Imports in January 2022 increased by 47% compared to last year according to customs data. In 2021 domestic production of alcoholic beverages decreased by 24% compared to 2020, while imports increased by 33%.

(Source: Monitor)