"GWS takes in-depth look at Russian market full report now available to members" - Insider News wine articles
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GWS takes in-depth look at Russian market ? full report now available to members.
In the wake of recent events in Georgia, Global Wine & Spirits has been
interested in understanding the changing dynamics of the Russian wine market
from the standpoint of both supply and demand. We are now publishing the second
in a series of national reports available exclusively to Global Wine &
Spirits members. Here is a brief summary of our report on Russia.
The
Russian wine and spirits marketplace continues to evolve. In recent years, there
has been a trend towards consolidating the alcoholic beverages industry through
a strengthening of the major players, enabling them to develop new product lines
and penetrate new geographic areas. It is important to note that the alcoholic
beverages industry is still highly dependant on the political and economic
situation (financial guarantees, problems with liquidity and the banning of
imports from Moldavia). Internationally, Russia is only 12th in terms of wine
consumption, but with 38% annual growth in 2006, the outlook is excellent. The
ban on imports from Moldavia and Georgia has created a new set of rules for the
market and established Russia as a niche market for other exporters. As a
result, many suppliers are competing for a place in the growth of wine exports
to Russia.
The Russian market is composed of a wide range of products ranging
from low- to high-end. Producers are being asked for ever more stringent quality
guarantees in an effort to improve the overall quality standard of the wine
industry. While the low-end market continues to dominate, a growing preference
for mid-priced wines is perceptible as wine becomes established as a status
symbol. In the coming years, Russia needs play an active role in providing wine
education and in making the product more accessible to all consumers. Moreover,
marketing policies should be implemented to promote the everyday health benefits
of wine compared to hard spirits. At the same time, major discrepancies remain
in consumption practices between the major urban areas and other regions of
Russia.
The current growth in wine consumption is part of an overall change in
wine and spirits consumption habits. Russians tend to prefer either sophisticated
brands of wines or refreshing drinks such as beer over hard spirits, whose
consumption has been declining for a few years now. Finally, imported wines
have been gaining market share in recent years, showing steady annual growth
in overall consumption. This is especially true of New World wines, which
more closely meet Russian expectations in terms of consumption criteria
(i.e., low-price, sweeter varietals, and so forth) than do Old World wines,
which continue to dominate the high-end market.
Contact Global Wine & Spirits directly for our full up-to-date report including consumption and distribution statistics and trends, a complete summary of import and labelling rules, as well as lists of key importers and distributors. Write to us at info@globalwinespirits.com