Spirits in Ukraine

PRE-COVID-19 PERFORMANCE

Vodka maintains best performance, as various legislative changes shape the environment for spirits

In the 2018 to 2019 period spirits had been seeing some value growth to balance out a decrease in volume sales. This was explained by a rise in unit prices over that period, spurred by growing inflation and increased costs for raw materials and components needed by the producers.

Rum and whisky benefit from ongoing discounts and strong brand awareness

Most domestic spirits fall into under a standard price segment, which is true for vodka, brandy, whisky, rum and gin. This is especially noted in whisky and rum, which are often sold at a discount – with rum being discounted more often than whisky in 2019.

Bayadera Group’s Natsionalna Gorilchana Kompaniya TOV maintains top place in spirits, thanks to stronghold in vodka

Natsionalna Gorilchana Kompaniya TOV continued to lead the somewhat fragmented category of spirits in company terms in 2019. The player is owned by Bayadera Group globally, with Bayadera Group also leading wine on a national basis in the country in 2019.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of spirits are expected to fall by 40% in 2020 in light of the impact of COVID-19. This compares to expected negligible growth for 2020 during research conducted in May 2019, i.

Affected products within spirits

With regards to spirits, no significant downtrading has been noted amongst Ukrainian consumers as yet. Those who have previously been drinking more premium spirits are unlikely to switch to cheaper products such as vodka or brandy.

Recovery and opportunities

The legislations around spirits in Ukraine remain fundamental in how the category will recover. The ubiquitous vodka looks set to remain a strong player moving forwards, especially in light of the demonopolisation, and brandy, rum and whisky are well supported by their existing sales strategies.

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