Page 131 - RusRPTOct20
P. 131
consumers. The process of marking of consumer goods started with furs from August 2016 and now covers tobacco, perfume and cologne, cameras, clothes made of leather, various linens (table, bed, toilet, kitchen), tires & pneumatic rubber tires, medical drugs, and footwear. The measure has received negative feedback from the beer industry, which has cited the low share of counterfeit consumption (3% in 2019) and already-existing monitoring system (EGAIS) as reasons to avoid the new measures. The introduction could trigger incremental costs for the largest producers and RBC sources estimated that the equipment for one beer line would $1mn and RUB0.5 per one bottle mark (3% of the blended price), while ultimately increasing the price and negatively influencing demand. We anticipate further details on the purported introduction and see potential cost expansion as moderate downside risk to our profitability estimates.
131 RUSSIA Country Report October 2020 www.intellinews.com
