Imported beer "conquers" the market, reaching 60%/ Domestic production is also easily recovered from tourism

2024-04-16 11:38:00, Ekonomi CNA

Imported beer "conquers" the market, reaching 60%/ Domestic production

Illustrative photo

The domestic production of beer, which has been in cost difficulties for almost 1 year, after the doubling of the excise tax that began to be implemented from January 1, 2023, has started to recover in the first months of the year.

According to Customs data, 6.8 million liters of beer were produced in January-March. Compared to the same period of 2023, domestic production has increased by 11%.

The administrator of the "Stela" brewery, Enzo Panteqi, claims that production levels continue to remain far from the amount produced in 2021 and 2022.

From January 1, 2023, Albanian companies are paying double the excise duty. The change in excise duty increased by 20% the costs of producers, who were also hit by the increase in the price of raw materials, malt beer, packaging materials and the increase in employee wages. For this reason, years in the months of January, February and March, some factories temporarily closed production, as they could not afford the costs.

According to Customs data, the amount of beer produced in January-March 2023 decreased by 22% compared to 2022.

Mr. Panteqi says that in January-March 2024, beer is being produced in factories more than in years, due to the good weather and tourism that favors sales, but also due to the increase in purchasing power influenced by the increase in wages.

While Xhim Begeja, head of the Association of Albanian Craft Micro Beers, but also a small operator in the market, with a production capacity of 700 to 750 liters per day, affirms with concern that the sector is in difficulty due to high costs after the doubling of the excise duty.

"Costs for production have increased especially after the excise duty changes. This is hurting local craft brewers. We are waiting for the start of the tourist season to see the progress of the demand, as local craft beer is more preferred by foreign tourists. But even in the tourism period, the lack of sales is felt, especially from producers far from tourist areas".

The weight of imported beer is increasing, it occupies 60% of the market

Imported beers continue to gain ground in the Albanian market. For the January-March period, imported beer took 59% of the market based on production and import data. The amount imported for the months of January-March, according to the Customs data, increased by 30%.

Local producers unanimously raised the concern several times that the doubling of the excise duty would not only increase the weight of imported beer on the market, but would lead to bankruptcy of the local industry. The production of the country before the fiscal changes was charged with 360 ALL/HL for producers under 200,000 HL, while for production above this level the excise duty was 710 ALL. After the changes in the law "On excise duties in the Republic of Albania", the tax was unified at 710 ALL for producers under and over 200,000 Hl, both domestic and foreign. /Monitor