Alcohol, Latvia, Legislation, Markets and Companies

The Health Ministry's plan for reducing consumption of liquor and combating alcoholism in 2012-2014 was approved at a meeting of state secretaries on February 9. The plan provides for a number of measures, such as a ban on advertisements and commercials of liquor in the mass media, and ban on sale of alcoholic beverages at filling stations. Furthermore, sale of liquor will only be permitted in specialty stores or within designated sections of department stores with separate cash registers, writes LETA.

"We must make full use of the existing opportunities for regulating the market of liquor, not limit legal entrepreneurship. It is very good that the government cares for public health, but we must remember that the proportion of the bootleg liquor market is around 40 percent," said the association's CEO Genadijs Klepikovs.

The association's board member and Mobil plus commercial director, Vitolds Bremmers, said that if liquor may only be sold at specialty stores, it will be very costly and may eventually lead to a steep reduction in stores selling alcoholic beverages.

This "empty space" will be swiftly occupied by bootleg liquor, notes Bremmers. "The 45 percent increase in the excise tax caused a reduction in excise tax revenue from LVL 525 million in 2008 to LVL 435 million in 2010. The state collects less money in taxes, and has to invest more money into measures against bootleg alcohol. That is why educating the public should become the priority in the near future," believes Bremmers.

Bremmers also emphasizes that the authorities should become more active in battling bootleg liquor producers and sellers, and do more to prevent sale of liquor to teenagers.