Wine in Russia

PROSPECTS

Significance of imported wine increases in 2017

The production and sales of domestic still light grape wine fell in 2017 due to increasing imports of mid-priced wine as Russians had more disposable income to spend. The growth of imported wine had a positive impact on the wider category, enabling it to record a much weaker decline than in previous years.

Sales of non-grape wine rise

The production and sales of inexpensive non-grape wine increased in 2017. This can be attributed to its more affordable prices but still decent quality.

Sales of premium still grape wine remain stable

Sales of premium wines remained stable in both 2016 and 2017. Indeed, demand for wine from rare grape varietals exceeded supply, especially from domestic producers with a protected geographical indication.

COMPETITIVE LANDSCAPE

Distributors seek to offer a balanced portfolio of both domestic and imported wines

In order to diversify and offer brands in all price segments, distributors in 2017 sought to offer a balanced portfolio of both domestic and imported still light grape wines. For example, Ladoga signed a contract with the Vinodelnya Yubileinaya winery and for the first time added domestically produced wine to its portfolio, seeking to promote Russian wines made from domestically grown grapes, which are generally affordable to consumers in different income brackets.

Manufacturers and distributors continue to develop their own retail chains

Fanagoriya, with its retail chain Fanagoriya - naturalnye vina, Ladoga with its Monopol markets and bars and Beluga Group all continued to develop their own outlets and organise events such as tastings. The aim of this is to be able to better communicate and interact with consumers, as well as achieve more flexible price management in the area of domestic wine.

Excise duties on imported wine increase in 2017

Up until 2017, Russian importers benefited from a lower rate of excise duty because of ambiguous wording in the tax code. However, in 2017, this loophole was closed.

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