Dive Brief:
- Russia will increase the price of vodka in that nation by 17% on Jan. 1. Another price hike is slated for August that would translate in to a 30% price jump from present levels.
- The government hopes that increasing the cost of Russia's iconic drink will lower the rates of alcoholism in that nation. Alcoholism contributes to some 30 percent of Russian deaths each year.
- The risk in the strategy is substantial, however. Drinkers may turn to riskier, illegal brews.
Dive Insight:
Russian drinking habits are legendary. So too is that nation's inability to face up to its alcoholism problem. Our suspicion is that the price hike won't help much. There are deeper and more complex issues that need to be addressed—particularly Russia's beliefs about alcoholism, the role of alcohol in the culture and the national suspicion and cynicism there about Alcoholics Anonymous.