Alcohol regulations. Europe, USA, Russia
Within my work I am going to review part of the countries’ legislation related to the existing alcohol regulations and existing polices, conventions and its development plans. Analysis will be based on the samples of different countries: Russia, EU (different countries) and United States. There are different areas of the existing alcohol regulations: risky environments, tax and prices, market restrictions and marketing control. All of them are more or less affecting business activities in different aspects.
Applicability of this report:
There are a lot of different types of businesses strongly dependent on alcohol ...view middle of the document...
Medium dependency of core business on alcohol regulation. In dependence to the country and structure of the business – share of sales of alcohol beverages and other alcohol containing liquids could reach up to 50% their turnover. Examples are – Carrefour, Metro Cash and Carry, national retail chains, small shops.
5. Transportation companies. Medium-low dependency of core business on alcohol regulation. Country driving policy and alcohol transportation rule can have an impact on the core business.
Based on these examples we can say that management of any business before coming to the new market or before establishing startup business which has even minimum relationship with alcohol must include in feasibility study country alcohol regulation analysis. For business in operation - management has to pay permanent attention to the following of county alcohol regulations. This report can help to identify areas in countries legislations where alcohol regulations are commonly exist on example of three countries and unions – USA, Europe and Russia
The starting point for the analysis of alcohol regulations on a country level is to decide what an alcoholic beverage is. In spite of the fact that there are internationally agreed definitions of alcohol for the purposes of classifying trade, most countries go further in their own alcohol laws.
In most of the Europe countries maximum level of alcohol for a ‘nonalcoholic’ drink is set on the level of 2% alcohol concentration or less (in accordance with World Health Organization’s (WHO) definition of ‘low’ alcohol band). Several Northern Europe countries have slightly higher level of alcohol concentration limit - 2-3%, while Romania and Slovakia do not define alcohol limits in this way at all.
There is one exception - Hungary, whose definition of 5% alcohol concentration – above the level of most
Beers – is only significantly exceeded by two other countries in the world.
In United States non-alcoholic beverage is a beverage that contains less than 0.5% alcohol concentration. There are interim malt beverages which are labeled as “low alcohol” or “reduced alcohol” . For these beverages the actual alcoholic content should be more than 2.5 percent alcohol by volume.
The maximum level of spirits concentration in ‘nonalcoholic’ drinks is 1.2%. At the same time there is another definition for the purpose of sale restrictions and alcohol regulation – all drinks with alcohol concentration below 1.2 % and beers. Starting from July 2012 all drinks with alcohol concentration more than 0.5% will be considered as alcoholic drinks (the law was enacted by Russian Duma in August 2011).
1. Risky environments. Driving Policy
In line with the European Commission recommendations, most of the EU countries have a maximum Blood Alcohol Concentration (BAC) of no more than 0.5g/L. Only Ireland, Luxembourg and UK still have a higher limit. Four...