Wine in Ukraine

PRE-COVID-19 PERFORMANCE

Wine preferences of Ukrainian customers reflect their social status and spending habits

Domestic brands were seen to be popular with Ukrainian consumers in 2019, with the main selection criteria being the lower price points, and the majority of wines in this area tending to be sweet and semi-sweet red wine. However, there was also some polarisation seen, as higher-income consumers tended to pay more attention to imported brands and premium products, placing greater emphasis on the quality of the wine and its country of origin.

Imported wine remains popular with exports decreasing, as players seek to further educate consumers about domestic products

Despite its growing popularity, consumer knowledge about wine and its subcategories remains low in the country. For example, the fact that small price differences between domestic and imported wines may indicate a lower quality of the imported brands, e.

Bayadera Group maintains top company position thanks to its successful sales strategies, as domestic producers plan how to compete with imported brands

Bayadera Group continued to lead the somewhat fragmented category of wine in 2019, holding the second the third most popular wines in brand terms, namely Marengo and Koblevo. Inkermansky ZMV TOV pipped Bayadera Group to the post in brand terms with its Inkerman label.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of wine are expected to fall by 39% in 2020 in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted in May 2019, i.

Affected products within wine

Wine, in general, is being and will be affected less strongly than spirits for example, because of lower prices in this category. Both domestic and cheaper imported brands are showing similar performance over the period of quarantine and are expected to do so until the end of 2020.

Recovery and opportunities

Wine in Ukraine has good scope for recovery, especially driven by the efforts of the Ukrainian government and domestic producers, to build brand image and promote the country as a wine producer. Local players had already started to work on improving the quality of domestic wine and lower the price points, thus making their propositions more attractive to Ukrainian consumers, and this can significantly help wine to recover from any losses.

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