E-Malt.com News article: Finland: Beer sales show 7.4% decline last year

A total of 774.6 million litres of brewery beverages were sold in 2012. Domestic sales of beer, cider, long drinks, mineral waters and soft drinks fell by 51.4 million litres, or 6.2 per cent. Such a dramatic fall in sales has never been seen before. Sales of mild alcoholic beverages fell by no less than 7.4 per cent on 2011, and sales of non-alcoholic beverages by 4.4 per cent, the Federation of the Brewing and Soft Drinks Industry reported earlier this week.

Sales of beer declined by 7.4% to 3.92 mln hl from 4.23 mln hl in 2011.

The alcohol tax on beer, cider and long drinks was increased by 15 per cent at the beginning of 2012. At the same time, the tax on soft drinks was raised to 11 cents per litre. A huge fall in sales – 51 million litres – means that the State has lost not only revenue from VAT, but also EUR 53 million in alcohol tax and EUR 1.6 million in soft drink tax.

“The brewing industry has been hard-pressed by the tax increases of recent years. Last year, an exceptional fall in sales was seen simultaneously in all beverage categories. When devising tax solutions, decision-makers should carefully evaluate whether tax increases will endanger jobs in the industry. The brewing industry provides direct employment for 2,300 and indirect employment for 30,000 people in Finland,” says Elina Ussa, Managing Director of the Federation of the Brewing and Soft Drinks Industry.

In addition to tax increases, sales were burdened by a rainy summer and stores stocking up in 2011 before the tax increases. The consumption of alcoholic beverages has been on the decline for five years running.

“There seems to be a permanent reduction in alcohol consumption, so no tax increases or radical changes in alcohol legislation are required,” says Ussa.

The statistics do not include sales by actors outside the Federation nor private imports of brewery products, which are not statistically recorded. As of the beginning of 2011, the statistics include all the brands of the members of the Federation of the Brewing and Soft Drinks Industry and any private label brands they produce.

22 February, 2013