Illegal Alcohol in El Salvador

The value of illegal sales of about 32,000 hectoliters of pure alcohol in the country each year is estimated at $54 million.

Monday, May 11, 2015

Growth in the volume traded on the illicit market has been increasing, with the exception of the period between 2012 and 2013, when it went down by 3.7% due to "... greater government control on ethanol, specifically in control of pharmacy alcohol and counterfeit or adulterated alcohol. "

Carlos Otero, regional manager of Euromonitor, said in an article in Elsalvador.com that "... ' Illegal alcohol is big business, which between 2012 and 2013 has generated significant revenue for the illegal industry, which represents a quarter of the total market for alcoholic beverages'. "

"...Major factors or conditions that drive the illegal market are: Quotas for ethanol purchases are approved with relative ease. This allows counterfeiters to buy ethanol as a raw material for their production. In addition industry representatives such as legal producers and unions indicated that taxes are high for the production of alcoholic drinks which leads to some producers declaring that ethanol is for medical use.

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More on this topic

Alcoholic Beverages and Contraband

September 2018

It has been reported that six out of ten bottles of liquor consumed in Costa Rica are of illegal origin, and this situation has been attributed to the heavy tax on alcoholic beverages in the country.

An investigation published by Crhoy.com details the figures on the market of illegal alcoholic beverages in Costa Rica. The document concludes that between 2014 and 2017 the value of the illicit liquor market has grown almost 50%. 

Smuggled Liquor in Honduras

November 2014

Liquor distribution companies are demanding that the government improve measures to control the illegal entry of spirits, particularly from Nicaragua.

The cost of a box of 24 units of Nicaraguan liquor ranges from $13.50 to $14, while in the Honduran formal market the same amount costs between $19 and $26.50.

Growing Demand in Europe for Costa Rican Liquor

November 2013

In the last four years exports of distilled spirits and ethyl alcohol to Europe have tripled.

Improvements in both the quality and productivity have allowed Costa Rican companies to increase their presence not only in America but also in Europe.

Elfinancierocr.com reports: "Interestingly, on the website of Economics Trading Indicators - used as a reference by the Costa Rican Oil Refinery (Recope) - it states that the international prices of ethanol (ethyl alcohol) decreased 16.6 % in the last 12 months " . This means that despite the drop in prices, Costa Rican exports increased.

Panama: Investment in Methyl Alcohol

August 2011

The Spanish company Lysply SA has announced the construction of a factory in Parita which will produce methyl alcohol based on solar energy.

The production plant will be built in an area of 50 hectares in the area of Los Grullos, district of Parita.

According to an article in Prensa.com: "The technology they will use is based on the concentration of solar energy collected by solar trackers which transfer the radiation energy into water vapor.

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