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Expensive cocktail: State of Israel, get me out of the drink - Walla! Of money


The new alcohol prices are causing a hangover even before the first sip, and if that was not enough, the state also decided to take a sip from every glass of alcoholic beverage we consume

Expensive cocktail: State of Israel, get me out of the drink

The new alcohol prices are causing a hangover even before the first sip: wineries and producers in Israel are raising prices, importers will raise prices following the change in tariffs by manufacturers abroad - and if those are not enough, the state has also decided to take a greedy drink from every alcoholic beverage we consume

Nir Kipnis


Friday, 07 January 2022, 09:01 Updated: Saturday, 08 January 2022, 08:16

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One of the areas of consumption that grew nicely along with the corona waves was the alcoholic beverages, especially when it comes to household consumption. You can enjoy the phenomenon or condemn it, but the combination of forced sitting in homes and anxiety about the future, will fuel private consumption in the "hot" market (ie, not in the "cold" market - also known as the image market - of closed hotels, restaurants and bars Alternately and for long periods). If you add to this the Israelis' specialization in home cooking, which did not miss the preparation of cocktails, matching wine to food and more, you get an explanation for the impressive growth.

In recent months, various manufacturers and importers have been competing for an increase in raw material prices, transportation costs and more - as in other areas, but at the beginning of the week ending, which also coincided with the beginning of 2022, a very unpleasant surprise awaited them.

"I came to release one container out of a few dozen I have - and suddenly they demand another NIS 10,000 from me," a well-known beverage importer tells us.

The reason - the tax update on a liter of alcohol, which was NIS 85, to NIS 87.04.

The difference sounds negligible, especially considering the fact that most alcoholic beverages, even the strongest ones, usually contain only 40% alcohol, and that most of them have a volume of only 700 ml (that is, the tax paid for a bottle of whiskey, brandy, vodka, c. Yen, tequila or rum and the like will be about NIS 35 per bottle), but as mentioned, this is just one component of the expected increase in February prices on behalf of wineries, alcohol producers and importers.

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The closures and uncertainty, together with culinary specialization, have increased alcohol consumption in Israel in the last two years (Photo: ShutterStock)

The tip of the iceberg we added to the drink

Walla has letters sent from two large local wineries as well as from a known importer, informing retailers of the expected rise in prices, which will be reflected, in the first stage and according to what we have learned from other areas of consumption, not necessarily by raising the nominal price of a particular product.

But wait, this is just the tip of the iceberg you added to the drink, because if that's not enough, anyone who likes to dilute their drink with a soft drink such as fruit juice or carbonated drink, will also absorb the increase in the price of these. In other words: vodka-oranges or gin and tonic, will be snatched twice - both the increase in the price of imported or produced gin in Israel, both the tax increase of the State of Israel and the increase in the tonic price due to the purchase tax imposed on sugary soft drinks.

And even that is not all, because those who produce or import liqueurs and syrups that contain a high concentration of sugar, have also absorbed the lateral increase in sugary drinks, so if your favorite cocktail at the bar contains both an alcoholic base, both sweet liqueur and a soft drink supplement, then That it has suffered an increase in the price of each component separately, which may, probably when the bar component of the bar is added to it, reach an addition of a few shekels.

No matter if you love Sour Whiskey, Bloody Mary or Mojito, for the glass you order at the pub from the beginning of February, you will probably pay a few shekels more than you pay for it today.

For the life of the State of Israel, which demands all of us to become more efficient while not giving up even a shekel from its income (Photo: ShutterStock)

What's wrong with declining consumption?

And what about the wine?

Although the wines are exceptionally full of few regulations and levies that apply to alcoholic beverages, even here a lateral increase in the price of most wines is expected.

As noted, retailers have in recent weeks received letters to this effect from almost every possible entity that produces and distributes wine in Israel.

Wines imported from abroad are also expected to become more expensive, since even the convenient exchange rate for importers, according to their testimony, does not offset the increase reflected in the new price lists of producers abroad.

This is the place to open big brackets and admit that it is difficult to protect alcohol consumption, which has not only culinary, social and cultural aspects, but also known and known negative effects, so we will note in this context that like many other foods, excessive consumption of alcohol can have devastating consequences. After all, his moderate consumption is socially pleasant and even good for health - and in any case, the human need to loosen up a little is probably strongest of all - as evidenced by the age-old connection between alcohol consumption and the development of human culture.

And those who are not convinced of the positive way, are invited to examine the issue also in the negative way: previous moves of significant increase in alcohol prices were very quickly reflected in an increase in drug use.

In other words, the significance of the legal increase in the price of legal alcohol, whose manufacturers and importers pay taxes legally to the State of Israel, will be felt very quickly on all underground platforms for the distribution of substances prohibited by the Drug Ordinance.

Only that from the increase in this activity, the State of Israel will not bring in even a penny.

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Knocking the head is also possible on the wall

So why is such a seemingly small bureaucratic move so annoying? Because the State of Israel actually says something like this: the tax did not rise, it was only updated according to the rate of increase in the index - if Israeli inflation was almost 2.5%, we simply updated the purchase tax to its real level. Sounds logical, right?

So this is, no - because let's take a closer look at this logical-argument on its face. The State of Israel basically says to all those involved in the field: My money buys less and therefore I update my price list, which is, in other words, exactly what manufacturers, importers and retailers say. Do you understand? No one, including the state, wants to lose - so the difference rolls into our pockets.


This conduct will not later prevent the esteemed legislators from convening economic committees, marching in total, in a sort of shameful parade whose whole purpose is a television circus the retailers, perhaps even some manufacturers and importers - and telling us great stories about breathtaking reforms that will surely lead to barriers, lowering barriers Terms that have already become tongue-in-cheek in the populist media discourse


So, the next time you watch a Member of Knesset or a "social" minister talk - seemingly from the bottom of his heart - about the cost of living, remember that he is actually a member of the largest corporation in Israel, which tells you something like this:

Friends, my raw materials have become more expensive. Since it does not make sense to demand that I become more efficient, that is, I close some of the thirty or so government offices, some of which I invented for purely political purposes, I demand efficiency or a reduction in expenses from all the following links in the chain:

Manufacturers, importers, retailers - and if any of these, then of you - citizens of Israel.

Because it's not enough that I'm responsible for the frustrating reality you live in, even if you feel like drinking something to forget it for a while, you'll find that even that already costs a lot of money.

Indeed, just like with the Corona, I transfer the responsibility to you, the citizens of Israel - and ask that whoever lied to him bang his head on the bar, show responsibility and bang his head on the wall, at least it's free (assuming you have your own wall, because housing prices have also doubled I only counted in the last year).

  • Of money

  • Opinions


  • Alcohol

  • Taxes

  • wine

  • vodka

  • whiskey

  • gin

Source: walla

All business articles on 2022-01-08

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