Alcoholic Drinks in Russia

Euromonitor International's Alcoholic Drinks in Russia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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• Get insight into trends in market performance
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• Identify market and brand leaders and understand the competitive environment

Product coverage

Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine

Executive summary

Strong growth linked to growing economy

Alcoholic drinks saw strong growth in terms of total volume sales during the review period, with this driven by the growing economic performance of Russia as a whole. Consumer income levels increased, with consumers thus spending more on alcoholic drinks. The global economic downturn seen in 2008 resulted in a marked slowing down in growth towards the end of the review period. However, growth continued, being underpinned by increasing domestic production and the spread of chained retailing and national brands of alcoholic drinks into regional areas.

Premiumisation continues in 2008

Russian alcoholic drinks saw growing premiumisation in 2008, with Russian consumers becoming increasingly aware of the type and quality of the alcoholic drinks that they consume. As incomes grew, consumer tastes shifted towards higher quality brands and premium products. In order to cater to this demand, there was growth in imports of premium spirits, while premium lager production grew in the country, making premium beer more affordable to a wide range of consumers.

Leaders focus on expansion through acquisition

There were numerous mergers and acquisitions in alcoholic drinks towards the end of the review period, with this having a pronounced impact on shares. One of the most active players in this area was Baltika PK OAO. This player remained a strong leader in beer and overall alcoholic drinks, with strong share growth towards the end of the review period chiefly achieved through the acquisition of regional breweries and local brands. Second-ranked Sun Interbrew also succeeded in building up its share through the acquisition of domestic breweries, thus facilitating the distribution of brands such as Klinskoye throughout Russia.

Chained grocery retailers gain share

There was strong growth for supermarkets/hypermarkets and discounters in Russia during the review period, with chains expanding across the country. With these channels stocking a wide range of alcoholic drinks and offering frequent price promotions, they gained share dramatically towards the end of the review period. Convenience stores also gained share due to expansion, along with urban consumers’ ease of access to these outlets and their wider and higher quality range of products in comparison with independent small grocers. Independent small grocers and kiosks meanwhile saw the sharpest decline in share, while continuing to dominate distribution. These more traditional channels are increasingly regarded as old fashioned and poor value among Russian consumers.

Growth to be driven by quality brands and lighter alcoholic drinks

Total volume growth is expected to slow during the forecast period, with this linked to growing maturity and the global financial crisis. However, growth will continue to be underpinned by a growing interest in premium brands, particularly in beer and spirits, where niche products such as whisk(e)y, cognac and tequila will gain share. In addition, volume growth will be supported by consumers growing interest in lighter alcoholic drinks, with wine, beer and RTDs/high-strength premixes thus gaining share from spirits.

Table of contents

ALCOHOLIC DRINKS IN RUSSIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Strong growth linked to growing economy

Premiumisation continues in 2008

Leaders focus on expansion through acquisition

Chained grocery retailers gain share

Growth to be driven by quality brands and lighter alcoholic drinks

KEY TRENDS AND DEVELOPMENTS

Government continues reforms of alcoholic drinks legislation

Economic growth boosts interest in premium products

Growing interest in health and wellness impacts alcoholic drinks

Specialist retailers rapidly increase in number

Summary 1 Leading Specialist Retailers 2007

Market merger and acquisition activity

Summary 2 Speculated Merger and Acquisition Activity 2007-2008

CITY KEY TRENDS AND DEVELOPMENTS

Moscow

St Petersburg

LEGISLATION

TAXATION AND DUTY LEVIES

Summary 3 Taxation and Duty Levies on Alcoholic Drinks 2008

Table 1 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008

Table 2 Selling Margin of a Typical Domestically Produced Beer Brand 2008

Table 3 Selling Margin of a Typical Domestically Produced Wine Brand 2008

Table 4 Selling Margin of a Typical Imported Spirits Brand 2008

OPERATING ENVIRONMENT

MARKET INDICATORS

Table 5 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008

MARKET DATA

Table 6 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008

Table 7 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008

Table 8 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008

Table 9 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008

Table 10 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008

Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008

Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008

Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008

Table 14 Sales of Alcoholic Drinks by City: Total Volume 2003-2008

Table 15 Sales of Alcoholic Drinks by City: Total Value 2003-2008

Table 16 Sales of Alcoholic Drinks by City: % Total Volume Growth 2003-2008

Table 17 Sales of Alcoholic Drinks by City: % Total Value Growth 2003-2008

Table 18 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007

Table 19 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008

Table 20 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008

Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013

Table 22 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013

Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013

Table 24 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013

Table 25 Forecast Sales of Alcoholic Drinks by City: Total Volume 2008-2013

Table 26 Forecast Sales of Alcoholic Drinks by City: Total Value 2008-2013

Table 27 Forecast Sales of Alcoholic Drinks by City: % Total Volume Growth 2008-2013

Table 28 Forecast Sales of Alcoholic Drinks by City: % Total Value Growth 2008-2013

DEFINITIONS

Summary 4 Research Sources

LOCAL COMPANY PROFILES - RUSSIA

BALTIKA PK OAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Baltika PK OAO: Key Facts

Summary 6 Baltika PK OAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 7 Baltika PK OAO: Competitive Position 2007

DAGVINO VKZ ZAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 8 Dagvino VKZ ZAO : Key Facts

Summary 9 Dagvino VKZ ZAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 10 Dagvino VKZ ZAO: Production Statistics 2006

COMPETITIVE POSITIONING

Summary 11 Dagvino VKZ ZAO: Competitive Position 2007

FANAGORIYA OAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 12 Fanagoriya APF OAO: Key Facts

Summary 13 Fanagoriya APF OAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 14 Fanagoriya APF OAO: Production Statistics 2007

COMPETITIVE POSITIONING

HAPPYLAND OOO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 15 Happyland OOO: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 16 Happyland OOO: Competitive Position 2007

ISTOK OAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 17 Istok OAO: Key Facts

Summary 18 Istok OAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 19 Istok OAO: Production Statistics 2006

COMPETITIVE POSITIONING

Summary 20 Istok OAO: Competitive Position 2007

MOSKVA-EFES PIVOVARNYA ZAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 21 Moskva-Efes Pivovarnya ZAO: Key Facts

Summary 22 Moskva-Efes Pivovarnya ZAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 23 Moskva-Efes Pivovarnya ZAO: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 24 Moskva-Efes Pivovarnya ZAO: Competitive Position 2007

OCHAKOVO MPBK ZAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 25 Ochakovo MPBK ZAO: Key Facts

Summary 26 Ochakovo MPBK ZAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 27 Ochakovo MPBK ZAO: Production Statistics 2006

COMPETITIVE POSITIONING

Summary 28 Ochakovo MPBK ZAO: Competitive Position 2007

OST GRUPA PREDPRYATY ZAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 29 Ost Grupa Predpryaty ZAO: Key Facts

Summary 30 Ost Grupa Predpryaty ZAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 31 Ost Grupa Predpryaty ZAO: Competitive Position 2007

RUSSKY ALKOHOL ZAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 32 Russky Alkohol ZAO: Key Facts

COMPANY BACKGROUND

PRODUCTION

Summary 33 Russky Alkohol ZAO: Production Statistics 2006

COMPETITIVE POSITIONING

Summary 34 Russky Alkohol ZAO: Competitive Position 2007

SYNERGYA OAO - ALCOHOLIC DRINKS - RUSSIA

STRATEGIC DIRECTION

KEY FACTS

Summary 35 Synergya OAO: Key Facts

Summary 36 Synergya OAO: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 37 Synergya OAO: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 38 Synergya OAO: Competitive Position 2007

BEER IN RUSSIA

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Lager price band methodology

Summary 39 Lager by Price Band 2008

Published data comparisons

SECTOR DATA

Table 29 Sales of Beer by Subsector: Total Volume 2003-2008

Table 30 Sales of Beer by Subsector: Total Value 2003-2008

Table 31 Sales of Beer by Subsector: % Total Volume Growth 2003-2008

Table 32 Sales of Beer by Subsector: % Total Value Growth 2003-2008

Table 33 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008

Table 34 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008

Table 35 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 36 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 37 Beer: Production, Imports and Exports: Total Volume 2002-2007

Table 38 Beer Exports by Country of Destination: Total Volume 2002-2007

Table 39 Beer Exports by Country of Destination: Total Value 2002-2007

Table 40 Beer Imports by Country of Origin: Total Volume 2002-2007

Table 41 Beer Imports by Country of Origin: Total Value 2002-2007

Table 42 Company Shares of Beer by National Brand Owner 2003-2007

Table 43 Company Shares of Beer by Global Brand Owner 2003-2007

Table 44 Brand Shares of Beer 2004-2007

Table 45 Forecast Sales of Beer by Subsector: Total Volume 2008-2013

Table 46 Forecast Sales of Beer by Subsector: Total Value 2008-2013

Table 47 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013

Table 48 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013

CIDER/PERRY IN RUSSIA

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

RTDS/HIGH-STRENGTH PREMIXES IN RUSSIA

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 49 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008

Table 50 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008

Table 51 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008

Table 52 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008

Table 53 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008

Table 54 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008

Table 55 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008

Table 56 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008

Table 57 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2002-2007

Table 58 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007

Table 59 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007

Table 60 Brand Shares of RTDS/High-strength Premixes 2004-2007

Table 61 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013

Table 62 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013

Table 63 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013

Table 64 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013

WINE IN RUSSIA

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

Published data comparisons

SECTOR DATA

Table 65 Sales of Wine by Subsector: Total Volume 2003-2008

Table 66 Sales of Wine by Subsector: Total Value 2003-2008

Table 67 Sales of Wine by Subsector: % Total Volume Growth 2003-2008

Table 68 Sales of Wine by Subsector: % Total Value Growth 2003-2008

Table 69 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008

Table 70 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008

Table 71 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 72 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 73 Volume Sales of Still Red Wine by Price Segment 2003-2008

Table 74 Volume Sales of Still White Wine by Price Segment 2003-2008

Table 75 Volume Sales of Still Rosé Wine by Price Segment 2003-2008

Table 76 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008

Table 77 Sales of Still Red Wine by Grape/Varietal Type 2003-2008

Table 78 Sales of Still White Wine by Grape/Varietal Type 2003-2008

Table 79 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008

Table 80 Sales of Still Red Wine by Quality Classification 2003-2008

Table 81 Sales of Still White Wine by Quality Classification 2003-2008

Table 82 Sales of Still Rosé Wine by Quality Classification 2003-2008

Table 83 Wine Production, Imports and Exports: Total Volume 2002-2007

Table 84 Wine Exports by Country of Destination: Total Volume 2002-2007

Table 85 Wine Exports by Country of Destination: Total Value 2002-2007

Table 86 Wine Imports by Country of Origin: Total Volume 2002-2007

Table 87 Wine Imports by Country of Origin: Total Value 2002-2007

Table 88 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007

Table 89 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007

Table 90 Brand Shares of Still Light Grape Wine 2004-2007

Table 91 Company Shares of Champagne by National Brand Owner 2004-2007

Table 92 Company Shares of Champagne by Global Brand Owner 2004-2007

Table 93 Brand Shares of Champagne 2004-2007

Table 94 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007

Table 95 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007

Table 96 Brand Shares of Other Sparkling Wine 2004-2007

Table 97 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007

Table 98 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007

Table 99 Brand Shares of Fortified Wine and Vermouth 2004-2007

Table 100 Company Shares of Non-grape Wine by National Brand Owner 2004-2007

Table 101 Company Shares of Non-grape Wine by Global Brand Owner 2004-2007

Table 102 Brand Shares of Non-grape Wine 2004-2007

Table 103 Forecast Sales of Wine by Subsector: Total Volume 2008-2013

Table 104 Forecast Sales of Wine by Subsector: Total Value 2008-2013

Table 105 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013

Table 106 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013

SPIRITS IN RUSSIA

HEADLINES

TRENDS

Production, Imports and Exports

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Vodka, gin and “other” blended Scotch whisky price band methodology

Published data comparisons

SECTOR DATA

Table 107 Sales of Spirits by Subsector: Total Volume 2003-2008

Table 108 Sales of Spirits by Subsector: Total Value 2003-2008

Table 109 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008

Table 110 Sales of Spirits by Subsector: % Total Value Growth 2003-2008

Table 111 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008

Table 112 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008

Table 113 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 114 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 115 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008

Table 116 Sales of Gin by Premium/Super-premium Split 2003-2008

Table 117 Sales of Vodka by Premium/Super-premium Split 2003-2008

Table 118 Sales of Flavoured vs Non-flavoured Vodka 2003-2008

Table 119 Spirits Production, Imports and Exports: Total Volume 2002-2007

Table 120 Spirits Exports by Country of Destination: Total Volume 2002-2007

Table 121 Spirits Exports by Country of Destination: Total Value 2002-2007

Table 122 Spirits Imports by Country of Origin: Total Volume 2002-2007

Table 123 Spirits Imports by Country of Origin: Total Value 2002-2007

Table 124 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007

Table 125 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007

Table 126 Vodka Production, Imports and Exports: Total Volume 2002-2007

Table 127 Gin Production, Imports and Exports: Total Volume 2002-2007

Table 128 Rum Production, Imports and Exports: Total Volume 2002-2007

Table 129 Tequila Production, Imports and Exports: Total Volume 2002-2007

Table 130 Liqueurs Production: Total Volume 2002-2007

Table 131 Other Spirits Production: Total Volume 2002-2007

Table 132 Company Shares of Spirits by National Brand Owner 2003-2007

Table 133 Company Shares of Spirits by Global Brand Owner 2003-2007

Table 134 Brand Shares of Spirits 2004-2007

Table 135 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013

Table 136 Forecast Sales of Spirits by Subsector: Total Value 2008-2013

Table 137 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013

Table 138 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013