The abolition of the license requirement for the production and sale of alcoholic beverages in 2019 is regarded as the beginning of a new phase in the country's beverage market. Following that decision, the process of obtaining permits has been significantly simplified, and market entry has become more accessible. As a result, both the number of producers and sales points has increased, and the product range has expanded.
Alongside this, the issue of quality has been more widely discussed in the market in recent years. It is reported that finding quality and non-counterfeit beverages has become somewhat more difficult amidst the simplification of permit mechanisms. Concerns regarding product origin, safety, and compliance with standards are also observed among consumers.
In a statement to Modern.az, Eyyub Huseynov, chairman of the Free Consumers Public Union, noted that the Free Consumers Public Union (AİİB) disagrees with the government's decision regarding the determination of minimum prices for alcoholic beverages.
"As is known, in October 2025, the Ministry of Economy approved the minimum retail prices for local and imported non-fruit vodkas, in accordance with packaging volume, and this decision came into force on November 24 of last year. The minimum sales prices approved by the decision apply only to retail sales. That is, the decision does not concern production enterprises."
The chairman also emphasized that during the one-month period since the decision came into force, information and investigations received by AİİB from consumers indicate that, since no minimum sales price is applied to producers, some manufacturers continue to offer low-quality vodka products to retail chains, wedding venues, and public catering establishments at prices even below cost:
"From 2026, an excise tax of 5.0 manats has been set for 1 liter of vodka in production. This means that 5.0 manats of the 1-liter packaged vodka produced will be excise tax, and 1.20 - 1.50 manats will be VAT. In other words, on average, 6.20-6.50 manats constitute only tax. Considering the product's cost, production expenses, and profitability percentage, the minimum sales price for 1 liter of packaged vodka by producers should be around 14.0 manats. However, information provided to AİİB by consumers indicates that some manufacturers, disregarding these calculations, offer 1-liter packaged vodka in the regions at prices ranging from 6.0 to 7.50 manats. Naturally, since the source and origin of such products are unknown, their quality will also be questionable."
According to E. Huseynov, if consumers previously saved on price by buying cheap vodka from retail sales and only lost out on quality before the decision came into force, after the decision, consumers suffer losses in both price and quality, which naturally leads to dissatisfaction among them:
"As a member of Consumers International (CI), an international consumer organization protecting consumer rights, and as an example of civil society representing and promoting our native Azerbaijan in numerous countries around the world, we do not agree with this decision. It should also be noted that in our country, the requirement for special permits (licenses) related to the production, sale, and import of alcoholic beverages has been completely abolished since 2016."
The chairman also recalled that before the licenses were abolished, 19 enterprises were engaged in wine production and 8 enterprises in vodka production in the country:
"Since the abolition of licenses, only one new winemaking enterprise – "Shirvan Wines" LLC (Meysari) – has been established in the country to date; the number of vodka producers, however, has approached 90. Consequently, due to the absence of an appropriate control scheme, the import of cheap and low-quality vodka products into the country has sharply increased, and imported goods have begun to surpass the sales of locally produced products, based on buyers' lack of information and traditional belief (that imported goods are of higher quality)."
Therefore, to put an end to unfair competition, ensure consumer interests, increase tax collection, and cleanse the alcoholic beverage market of low-quality vodka products, I propose that at least the experience of neighboring CIS countries in this area be referenced. Serious monitoring should be conducted in up to 90 vodka production enterprises that started operations after the abolition of special permits (licenses) related to the production, sale, and import of alcoholic beverages since 2016, abusing this favorable gesture of immunity created by the state for business entities and disregarding consumer interests, and the government's decision on minimum prices should also be applied to production enterprises!" said E. Huseynov.
For your information, the production, import, and sale of alcoholic beverages are regulated based on relevant licenses in all countries worldwide.
