Wine prices to increase by 3.5%. Liquors get 7% more expensive

Wine prices are expected to increase by 3.5% annually over the planning period starting in 2014, while liquor prices are forecasted to climb by about 7%, according to Branimir Botev, Chairman of the Governing Council of the Association of Producers, Importers and Traders of Spirit Drinks. The continued drought this summer will lead to lower grape crops with unsatisfactory quality for many vineyards, he told Bulgaria on Air. The ratio of white to red grape yields will remain one to two, exactly the opposite of consumer trends showing ever-growing preference for white wine domestically and globally, Botev noted. An inrease in energy prices and subdued demand, combined with the ban on vineyards expansion till 2020 are driving prices upwards. The amendments to the Wine and Spirits Act prohibit new vine plantations unless some of the old plants have been uprooted or a special permission from the National Reserve has been obtained. Under EU directives the penalty for violating the ban is eradication of the new plants.

The growing informal sector, accounting for 50-60% of the grape yields, has become an overwhelming concern for wine producers because of the inadequate control exercised by the National Customs Agency, said Botev. Monitoring of the so called "village distillers" shrank by 85% in 2011, according to official data. At the same time, industry representatives complain that legal businesses are overregulated.

"This year's grape crop will be 30% lower because of the harsh winter's effect on the plantations and the continued drought during the last few months," said Plamen Mollov, head of the Bulgarian Vine and Wine Chamber, BNR reports. This year's production is forecast at 41,000 tonnes, which is one-third less than in 2011.

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