Wine in Ukraine

PROSPECTS

Promising future for wine in Ukraine

In 2017, total volume sales within wine remained stable in Ukraine. The main reason for this was the rise of excise tax on sparkling and fortified wines and a consequent increase in unit prices.

Lack of government support

2016 saw positive changes in legislation for micro-wineries, with the UAH500,000 licence applicable to winery producers that use domestic winery raw materials being cancelled. However, the increase in domestic full-cycle production of wine was not a governmental target in Ukraine.

Growing consumer sophistication

Port continued to lead growth in 2017, with total volume sales rising at double-digit pace, following even stronger growth in 2016. This can mainly be attributed to the fact that sales are growing from a low base, as well as growing consumer sophistication and willingness to try different wine products.

COMPETITIVE LANDSCAPE

Bayadera Holding remains leader in 2017

Bayadera Holding remained the clear leader in wine in Ukraine in 2017 and has gained strong consumer loyalty after many years, mainly due to active promotional activities and advertising. The company’s Marengo and Koblevo brands are widely available via modern and traditional grocery retail channels throughout the country.

Innovation plays important role

Despite the development of a high level of loyalty to wine over the years, Ukrainians are becoming more interested in new brands. Packaging is playing a key role in the selection process, encouraging companies to invest in higher quality wines.

Private label ranges gain share in economy segment

Private label wine accounts for a small share of total volume sales, although falling disposable incomes are boosting demand in this area. Major retailers have started to introduce wine under their private label ranges.

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