Counterfeit Wines And Spirits Cost EU Businesses €1.3 Billion A Year
The production of fake spirits and wine costs EU businesses €1.3 billion each year, according to a report by the European Union Intellectual Property Office (EUIPO).
In fact, 4.4% of legitimate sales of spirits and 2.3% of legitimate sales of wine are lost each year due to the counterfeiting of alcoholic drinks.
These lost sales translate into 4,800 jobs directly lost across these sectors, but when the knock-on effects are taken into account, the group said that 18,500 additional jobs are lost, mainly in agriculture and the food industry.
The total yearly loss of government revenue (household income taxes, social-welfare contributions, corporate income taxes, VAT and excise duties) as a result of counterfeit products in these sectors across the EU-28 is estimated at €1.2 billion.
The countries losing the most as a result of spirit and wine counterfeiting per year are: Spain (€263 million), Italy (€162 million), Germany (€140 million), France (€136 million) and the UK (€87 million).
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.