Khylnovsk, Russia
How is it produced?
The production of vodka is traditionally made from grains such as wheat, rye, or potatoes with variations in raw materials which reflect regional agricultural practices and preferences. The distillation and multiple filtering process then creates vodka.
Describe the supply chain to the store shelf in Canada:
The production of vodka in Russian distilleries is exported from Russia to international markets. With relations through the World Trade Organization (WTO) and Trade Related Intellectual Property Rights (TRIPs), the vodka is exported to Canadian markets. These trades have to comply with international trade regulations and quality standards. Furthermore, importing alcohol into Canada involves liquor control boards to handle the processing of alcoholic beverages. Once the imported vodka meets Canadian regulations and standards, it is then distributed to markets for consumers to purchase. (Grubesic, Murray, et. al, 2012)
What is the power balance between the producer and seller?
Before the involvement of multinational-corporations the production and selling of vodka was through buyers and labourers. Small distilleries allowed workers to sell their own products. However, with the introduction of multinational corporations, power dynamics in the supply chain have shifted greatly. There is now greater significance in negotiating terms with distributors, and retailers in comparison to the working class that produces vodka (Fominaya, 2020). This power dynamic can impact pricing and production standards of the supply chain.
Can you recommend changes to the system to improve the balance?
Providing equal opportunities for rural vodka distilleries to promote their product, without the need of multi-national corporations would be ideal in expanding their consumer base. Therefore, improving balance in supply chain standards. Furthermore, ethical supply chain management practices are crucial in balancing the supply chain power dynamic. Adopting ethical supply chain practices such as ensuring that international labor rights outlined by the ILO are protected throughout the entire supply chain production process regardless of the location is the first step.
References/Resources:
Collins, D. (2015). The World Trade Organization: A Beginner’s Guide. Simon and Schuster.
Fominaya, C. F. (2020). Social movements in a globalized world. Bloomsbury Publishing.
Grubesic, T. H., Murray, A. T., Pridemore, W. A., Tabb, L. P., Liu, Y., & Wei, R. (2012). Alcohol beverage control, privatization and the geographic distribution of alcohol outlets. BMC public health, 12(1), 1-10.
Herlihy, P. (2012). Vodka: a global history. Reaktion Books.p.40-75
Herlihy, P. (2017). The Russian Vodka Prohibition of 1914 and Its Consequences. Dual Markets: Comparative Approaches to Regulation, 193-206.
Mariusz, P. K. (2018). Liability of Origin of Russian Companies in Germany, Poland and Hungary: Influence of State Ownership and Innovation.
Matthews, D. (2011). Intellectual property, human rights and development: the role of NGOs and social movements. Edward Elgar Publishing.
Schrad, M. (2014). Vodka politics: alcohol, autocracy, and the secret history of the Russian state. Oxford University Press, USA.
Wiśniewska, P., Śliwińska, M., Dymerski, T., Wardencki, W., & Namieśnik, J. (2015). The analysis of vodka: a review paper. Food Analytical Methods, 8, 2000-2010.