Cabinet settles issue of minimum prices of wine products – economy ministry

Ukraine's Ministry for Economic Development, Trade and Agriculture says the Cabinet of Ministers has settled the issue of minimum retail prices of certain types of wine products.

That is according to a statement published by the ministry's press service on its website on January 13.

The relevant resolution to support national producers, combat counterfeit products, and improve the quality of viticulture and winemaking was adopted at a Cabinet meeting, the report said.

Read alsoUkraine lifts duty off EU wine imports"The resolution stipulates an increase in minimum retail prices of Ukrainian sparkling and carbonated wines, fermented beverages, and flavored sparkling (carbonated) wines (drinks) from UAH 89 to UAH 109 [US$3.18 – US$3.90] per 0.7-0.75-liter bottles (UAH 20 up)," the press service said.

"Now, it's very important to protect the domestic wine market from external expansion and provide consumers with quality Ukrainian winemaking products. As a result, everyone wins: Ukrainian winemakers will become competitive, regaining their lost market position. Winegrowers will have greater demand for their raw materials, while Ukrainian consumers will enjoy quality and non-falsified products," the press service quoted Minister for Development of Economy, Trade and Agriculture Ihor Petrashko as saying.

Manipulation of product names and prices on the market is a major challenge nowadays. That is, imported wine-based beverages (a beverage has a lower quality than sparkling wine) is sold at a price similar to that of sparkling wine (the quality of wine is incomparably higher). So, Ukrainian producers of quality sparkling wines find themselves in a competitive challenge situation, while misled Ukrainian consumers buy low-quality imported drinks instead of real sparkling wine.

According to Petrashko, the resolution eliminates all manipulative discrepancies and settles the issue as to "the price must be equal to the quality."

"National producers have lost 40% of the sparkling wine market, which may lead to shutting down Ukrainian wineries. Increase in production will allow Ukrainian companies to resume their operation and create new jobs, which will lead to budget revenues and social stability," he added.

Background

On September 25, Ukrainian President Volodymyr Zelensky's Office said the head of state had urged the government to pay special attention to the issues of small-scale production in the field of viticulture and winemaking.