Latvia’s economy loses EUR 20 million annually because of counterfeit alcohol

Latvia loses EUR 20 million annually because of counterfeit alcohol. Its proportion on the market of strong alcoholic drinks and wine is approximately 9%, as concluded in the report by European Union Intellectual Property Office.

The European Union’s economy loses nearly EUR 1.3 billion and 18,500 jobs annually to illegally produced alcohol.

Spain has the highest reported losses – EUR 263 million. Estonia loses EUR 5 million, as reported by Latvian Patents Office.

According to the report on turnover of counterfeit alcohol, the average volume of fake products in EU member states is 4.4% in the segment of strong alcoholic drinks and 2.3% in the wine segment.

EUIPO Director António Campinos notes that this is not just about lost tax revenue. The situation applies to legal jobs in the production, agricultural, processing and trade sectors involved in the production and realization of alcohol. Most of the EU alcoholic drinks production sector consists of small and medium-sized companies with an average of ten workers each.

Davis Vitols, head of Latvia’s Alcohol Industry Association, admits there is a problem. He notes that Latvia’s market most often faces contraband carried from Russia and Belarus. Those are mostly counterfeit alcoholic drinks in plastic and sometimes glass bottles with no labels. Latest statistical information from the Disease Prevention and Control Centre for 2011 states that 1,082 reports were compiled, 72 warnings were expressed, 966 fines were applied, 279 administrative arrests performed and 278 confiscations of goods were performed that year.

Sandris Laganovskis, Director of Patents Office, adds that the Patents Office cooperates with the State Revenue Service and Economic Crimes Prevention Office. Together they have organized joint training in regards to measures employed to better protect the market.

BNN/LETA 

Comment