Retailers across Estonia are facing the introduction of a new fee for alcohol licences that are set to reduce the number of outlets selling beer, wine and spirits.
At present, around 10,000 alcohol sales licences have been issued across Estonia with the number having increased in recent years. In fact, according to the Eesti Rahvusringhääling (ERR), 90% of Estonian’s can reach a store that sells alcohol within 10 minutes of their homes, reflecting the expansion of the country’s off-trade which has been catering for high demand and positioning itself for local convenience.
Despite these wins for the sector, the expansion has captured the attention of the World Health Organisation (WHO) which has now recommended using paid sales licences to reduce the number of sales outlets – a move that the Ministry of Social Affairs is now considering.
The knock-on effect
The fees are anticipated to have the knock on effect on the sector, reducing alcohol availability on such a broad scale while also assisting to push up prices for consumers as retailers pass on the costs or leverage the attraction of their drinks stock availability.
Examples of the impact of the fees were outlined by the ERR, which highlighted instances where Leesi village shop in Juminda, which is a cooperative founded by local residents, is known for selling everyday items.
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