Ukrainians increase the consumption of vodka

The crisis in the country causes the decrease of low alcohol products consumption. Due to a decline in living standards Ukrainians began to consume more amounts of vodka.

In Ukraine consumption of vodka is growing while sales of wine and beer is falling.   Market participants attribute this achievement primarily to decrease in the share of the shadow market. However, experts believe that the demand rises due to falling living standards, and expect further growth in consumption of spirits, writes Kommersant-Ukraine.

In January-June 2012 the production of vodka in Ukraine increased by 15.1% to 15.43 million dal, of which 12.99 million dal was sold domestically, which is 20.1% more than for the same period last year.

Growth of vodka sales in the domestic market is connected primarily with a reduction in the share of the shadow market. According to the State Tax Administration, in 2011 the share of illegal alcohol production was about 20%. The Ministry of Finance estimates it at 40%.

Director of the Russian research company TSYFRA Vadim Drobyz believes that the sale of vodka in Ukraine has increased due to lower living standards.
"As world practice shows, in the times of crisis in the country consumption of low alcohol products – beer, wine – falls, and consumption of inexpensive strong spirits grows. This is what is observed now in Ukraine," – he said.

In January-June, beer consumption has declined by 2%, while sales of wine fell by a quarter.

Experts believe that wine has always been an indicator of the financial condition of the population. While in 2007-2008, before the global financial crisis, Ukrainians annually consumed 6-6.5 liters of wine per person, now it is about 3 liters.

Further drop in people welfare will continue to stimulate the consumption of strong alcohol. 


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