Strong alcohol producers say growth of border trade has decelerated

TALLINN – An analysis compiled by the Estonian Association of Alcohol Producers and Importers on border trade, tax receipts and the amount of alcohol declared to the Estonian market indicates that the growth of trade of alcohol on Latvian-Estonian border has slowed down.

"Compared with the record years of Estonia's domestic sale, the sales of both strong alcohol and beer have by now fallen some 40 percent. Tax receipts are also stabilizing, as more excise duty will be paid from the sale of beer this year than any previous year," Triin Kutberg, managing director of the association, said.

She added that as the excise duty on alcohol will rise this year in Latvia, Estonia has a good opportunity to establish a tax peace for the next four years, during which the market can calm down and prerequisites can be established for a long-term sustainable excise duty policy.

At the same time, the Estonian Breweries Association said on Friday that 50 percent more beer was sold on the Latvian border in 2018 compared with the year before, while the sale of long drinks and ciders was up 2.2-fold or 120 percent compared with 2017.

It appears from the sales figures assembled by the association, that altogether 27.1 million liters of beer was sold on the Latvian border in 2018, while the corresponding figure stood at 18.1 million liters the year before. The sale of ciders and long drinks totaled 5.1 million liters last year, while the amount sold in 2017 was 2.3 million liters, the association said.

The Estonian Breweries Association is an umbrella organization for major Estonian producers of beer and other low-alcohol beverages. The association's sales statistics have been collected from member organizations.

The Estonian Association of Alcohol Producers and Importers includes 13 businesses: AS Liviko, Altia Eesti AS, Pernod Ricard Estonia OU, AS Prike, Tridens AS, MOE OU, Estonian Spirit OU, AS Remedia, Amber Distribution OU, Dunker Estonia OU, AS Avallone, AS Coca-Cola HBC Estonia and Brown-Forman Netherlands B.V.