SPIRITS PRICES IN LITHUANIA EXPECTED TO RISE 30 PCT IN 2008

An association bringing together more than 90 percent of Lithuania's strong alcoholic drink manufacturers and distributors forecasts that spirits prices will increase by more than 30 percent this year. Prices will be pushed by increasing production, logistics and labor costs, the Association of Alcoholic Beverage Trading Companies said in a press release.

Algimantas Ciburys, the marketing director at Stumbras, a member of the association, blamed the increase in beverage prices on rising prices for key raw materials. "Some natural raw materials, such as berries and juices, have doubled in price. Prices for packaging -- bottles, corks and labels -- have risen by around 30 percent," he said. Laurynas Miskinis, the commercial and marketing director at Vilniaus Degtine, another major beverage manufacturer, said that ethyl alcohol production costs had already increased by 60 percent due to rising prices for grain and energy resources and would rise further. He said fuel prices had pushed up Vilniaus Degtine's costs by 25 percent. Marek Kuklis, the director of the alcohol import company Bennet Distributors, predicted that prices for imported drinks would go up by up to 35 percent. "Suppliers have raised prices by around 20 percent. Costs for transport services, warehousing and distribution in Lithuania have increased by some 23 percent and continue to rise. Labor costs have increased as well," he said. Strong alcoholic beverage sales in the country fell by 23 percent during the first quarter of this year, according to data from the State Tax Inspectorate. Vilnius newsroom, +370 5 2058518, verslas@bns.lt