Can Spirits production fuel economic growth in Romania?

THE CASE STUDY:
Our client – the Romanian Spirits Association – wanted us to help them build a positive image of the industry. Their goal was to raise awareness about the alcohol producers contribution to the local economy. Infografitti used a number of strong visual metaphors to represent the negative impact of increased taxes and the potential health threat for the Romanian society.

THE STORY:
The business of аlcohol production is not the first thing that comes to mind when talking about fueling economic growth in a country. However, according to the Romanian Spirits Association, total annual sales of spirits amount to 700 million euro (2014) – a significant figure that cannot go unnoticed.

With over 165 000 jobs directly or indirectly linked to the sector and 137 million euro value gener-ated, the Spirits sector has the potential of a significant growth driver for the Romanian economy.

Illegal spirits production and alcohol black market are major obstacles on the way to growth though.
As 60% of the retail price of a bottle of alcohol is taxes, it is not surprising that many people prefer to produce their own spirits (125 million liters annually). Although the home-made brandy and Țuică can be dangerous for the health, the state looses over 270 million euros in excise duty because of the black market. Declared sales of alcohol have also significantly dropped compared with 2012 – by 20% in 2013 and 32% in 2014.

By reducing the tax on spirits, the Romanian state can help the sector “come to light” and generate a bigger value for the economy, while providing alcohol products with guaranteed quality that do not threaten consumers health.

Diageo Romania Infographic Infograffiti

Posted on April 7, 2017 in Uncategorized

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