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| Gov’t to introduce state monopoly on alcohol sales |
| Budapest, 05.09.2014 |
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| First it was gambling and then tobacco. Now, in its latest nationalization round, the government will monopolize alcohol sales. According to a draft report obtained by Napi.hu, the government has finalised the concept and is now discussing implementation with the leading market players. The concept is based on the recent tobacco sales nationalization and licenses will mostly only be awarded to the tobacconists that have won licenses in the five rounds of tenders since 2012.
Opponents to the scheme say smaller shops could lose 15-20% of their turnover were alcohol sales monopolised.
The nationalization of tobacco shops was widely reported as having been a highly corrupt process that saw Fidesz councillors awarding tobacco franchises to party loyalists at will, often at the expense of long-established corner shop owners, many of which were forced to close up shop. The government tweaked the law to favor the winners, raising guaranteed profit margins from 4% to 10% and adding other products to the list of permitted products for sale, including alcoholic and non-alcoholic beverages, energy drinks, newspapers and lottery tickets. However, lack of retailing experience and a booming black market in tobacco products has rendered most of the national tobacco shops loss-making. Awarding them the exclusive right to sell spirits is expected to restore many of them to profitability.
The alcohol nationalization program has been discussed at government level for years, as reported by Nepszava in November 2012 and by Magyar Narancs, which quoted from a leaked “expert memorandum” in May 2013. However as recently as April Fidesz was still categorically denying that it was planning to establish a state monopoly on alcohol.
At the time Napi.hu suggested a better strategy would be to only monopolize the sales of spirits and to give alcohol sales licenses to large chains, rather than tobacco kiosks.
Hungary’s annual turnover in alcohol and tobacco combined comes to HUF 4 trillion, around 20% of the total turnover of the Hungarian food and drink market. The average Hungarian adult drinks 13 liters of alcohol per year, just over double the global average, but similar to other Eastern European countries such as Ukraine, Belarus and Russia.
odkaz na stránku |
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Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
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