Estonian retailers have indicated that plans to introduce a paid license for the sale of alcohol will increase prices and may reduce the number of shops selling beer, wine and spirits, writes ERR News.
More than 10,000 licenses for the sale of alcohol have been issued in Estonia, and their number has grown significantly in recent years. Some of them were received just in case, and are not used.
90% of Estonians can get to a store selling alcohol within ten minutes. The World Health Organization has recommended reducing the number of stores selling alcohol, and this is exactly what the Estonian Ministry of Social Affairs is considering.
In the village shop, you can buy everyday goods, and alcohol sales account for about 30% of sales. If new regulations on the sale of alcohol are adopted, the store will have to pay a fee. Prices at the local cooperative are already slightly higher than in large chain stores. Ants Viirmaa, a member of the cooperative, said that if the levy is symbolic, prices will not change significantly. However, he added that
any tax is reflected in prices over time.
If it is high, prices will definitely rise. Viirmaa pointed out that if alcohol prices rise significantly, it will go from the shelves, figuratively speaking, “under the counter.”
Alcohol is a minor side business for the Riikets flower shop chain. If a customer wants to add a bottle of wine to a bouquet ordered in an online store, it can be done. But if the alcohol sales license becomes financially unprofitable, the store will refuse it. Getriin Hermlin, executive director of Riikets Flowers, said that everything depends on how expensive and difficult it will be to obtain a license. If it is very bureaucratic and involves high costs, there is no point in continuing to sell alcohol. She added that she does not think that it will have a big impact on the company’s operations, but there will definitely be buyers who will choose to shop elsewhere, for example, in the Selver chain of stores, where you can buy a bouquet of flowers and a bottle of champagne in one place, thus transferring power to the hands of large chains.
An analysis of which licensing system would be more suitable for Estonia will be completed by the end of the year.
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