BizJournals Portfolio
Nov 24 2008 2:15pm EDT

You Know Things Are Really Bad When...

To get an idea of just how hard Russia has been hit by the global economic slump, look at recent market statistics on a vital commodity. Not oil. Vodka.

Newly impoverished Russians can no longer afford their national spirit. Sales are plummeting and stockpiles are soaring. The government says that store shelves are stocked with a record inventory of 8.2 million deciliters, or almost 22 million gallons of unsold vodka -- six times as much as last year at this time.

"People are having to save money, including on drinks, and this is connected to the impact of the financial crisis on people's disposable incomes," Pavel Shapkin, president of the National Alcohol Association, told Reuters.

It's enough to drive Russians to drink. And it has. Shapkin said that 1,458 people died of alcohol poisoning in September, most of them after drinking homemade or bootleg spirits that are cheaper than store-bought vodka. It was the first time that alcohol poisonings grew in Russia since 2006.

That prompted vodkamakers to call for an American-style solution: a government bailout.

"At times like this, any grandmother can collect some old bottles, fill them with whatever she wants, and sell them to the alcoholics that are trying to save some money," Shapkin said. "The government has to do something for these people trying to afford the most basic essentials in life."

by Mark Stein


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