New Year brings an end to bulk beer discounts; alcohol taxes raised across the board

"Kossu barometer" goes over EUR 10.00 once more

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The bulk discounts on six-packs and 12-packs (or “dachshunds”) of beer are now a thing of the past.
      The popular product, which supermarkets adopted as a means of enticing in customers as a kind of “loss leader”, has succumbed to legislation passed in 2007 according to which the price of an individual bottle or can of beer must be the same, regardless of whether it is bought singly or in a larger package.
     
A further change from the beginning of 2008 that will affect stores is that any special offer pricing on drinks must be a long-term affair: the offer must be in effect for at least two months, rather than a spot benefit for shoppers, for instance at the weekend.
      Likewise, customers can no longer be temprted in to their local supermarket or restaurant by advertising that touts cheap prices on alcohol.
     
Along with the restrictions on retailers, the turn of the year will mean higher prices for drinkers through taxation. Alcohol taxes have been increased, with 15% hikes on strong liquors and 10% on milder drinks.
      The move is a reversal of the substantial tax cuts introduced in March 2004, at the time when Estonia joined the European Union.
     
The earlier cuts, which were widely criticised for pushing up consumption and knock-on ill-effects, were also the subject of debate owing to a decision at the time to reduce duty on spirits by more than that on wines and beers.
      After the increases, a 50cl bottle of Koskenkorva, the popular Finnish clear spirit (38%), will cost EUR 10.49, an increase of EUR 1.14. The price before the cuts of 2004 was close to EUR 14.30.


Previously in HS International Edition:
  Calls in Parliament for higher alcohol tax hikes (18.10.2007)
  Sales of alcohol reach new record (11.10.2007)
  Parliamentary parties ready for alcohol tax hike (14.2.2007)
  Warning labels coming on containers of alcoholic beverages (7.2.2007)
  Government aims to stop dumping of beer, but no changes to alcohol taxation (3.3.2006)
  Signs of quieter days ahead in the supermarket beer wars (5.1.2006)

Helsingin Sanomat