[lg policy] Ukraine: Ukrpyvo predicts large losses of breweries with adoption of 'language' law

[Harold Schiffman]

Ukraine's economic news

Ukrpyvo predicts large losses of breweries with adoption of 'language' law

14:14

The taking effect of a requirement of the law on the language law on
the principles of state language policy regarding labeling of goods in
the state and regional languages will lead to many-million losses of
breweries, the sector organization Ukrpyvo has said.

"The observation of the proposed requirement of the law by producers
will require urgent radical changes in many production, logistics,
business and other processes, due to which only the beer and soft
drink sector, but all of domestic goods producers will have to see
multi-million losses," reads a report of the association issued on
August 2, 2012.

According to the press release, this legal initiative foresees neither
the term for the technical re-equipment of companies, nor the
procedure for switching to the introduction of the multi-language
requirement for labeling of goods.

"The law is to take effect in the height of the season when breweries,
logistics infrastructure, distributors and outlets are operating at
full and have large stocks of goods, which sale on territories with
regional languages will become illegal from the moment of the
publication of the law," Ukrpyvo said.

Experts say that Ukrainian producers will have to remove and write off
a large amount of goods and they will have to stop production and
sales of goods in Ukraine. In addition, companies will also face
losses due to the reason of impossibility to use the package and
labels that have been produced.

Ukrpyvo said that under present Ukrainian law, regional languages are
languages of territorial communities not only of large administrative
structure, but separate district centers, towns, settlements, etc.
Taking this into account, companies will have to additional mark
products for one district or even a settlement.

Ukrpyvo plans to address the Ukrainian president to change Article 26
"Language of advertisement and goods labeling" for an alternative one,
which will be able to remove the said threat.

http://www.interfax.com.ua/eng/eco/113158/



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