Alcohol import in Russia at the breaking point

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Written by Administrator
Sunday, 10 February 2013 16:06

Russia has ceased to be gold Eldorado for the world's leading producers of strong alcohol.

As follows from the Federal customs service for the year 2012 data (is at the disposal of RBC daily), large three players - Diageo, Pernod Ricard and Bacardi lose share in major categories of alcohol, but in some segments even having physical volumes of deliveries reduced. This trend is connected with saturation of the Russian market and decrease in growth of population incomes. 2000 years marked the rapid growth of strong alcoholic beverages import in Russia.

Whiskey, rum, tequila, gin every year showed the increase by 50-60% and some Western journalists made a hasty conclusion that Russians refuse to vodka in favor of foreign drinks. Russian experts consider the main reasons of growing interest to import alcohol, on the one hand, the growth of income of a certain group of the population, on the other - the game at lower prices from suppliers.

Probably 2012-th is the last year when importers of strong alcoholic beverages in Russia demonstrated positive results. The total growth of deliveries amounted to RUR 12.48 million dal, which is by 10.1% more than in 2011. The largest categories (whisky, rum, tequila, gin) shown growth also, however incomparable with the pace of 2011. For example, whiskey supply to Russia increased by 16,87% and amounted to 3,89 million dal. In 2011, the growth in this category reached 66,02%. The same picture is observed in other segments.

By experts opinions alcohol market reflects the socio-economic processes in the society. Population that could pay for expensive imported alcohol has ceased to grow and rates of growth of import of such products is coming down.

"Big three" - Diageo, Pernod Ricard and Baccardi have got losses of market share in key categories and in some segments the volume of deliveries have reduced. So, the largest producer of whiskey Diageo reduced its share from 35,58 to 27.68 percent. The actual decrease in the volume of imports amounted to about 1 million liters.

Rom manufacturer Bacardi lost segment share by almost 10% reducing deliveries to Russia almost on 500 thousand liters. The leader in the category of the Jinn Pernod Ricard reduced its share in the segment by 7.9%.

Giants lose their shares under the pressure of the smaller players, which were attracted to the market for growing demand among Russians on imported alcohol. If before in Russia was presented 2 large two Rom brands - San and Captain Morgan, then now it is a wide range of cheap unknown brands imported by small distributors. Due to its low price these products takes market share from the big brands. In addition to above mentioned there were some strategic miscalculations: f.ex., Diageo in the struggle with the brand of William Lawsons belonging to Bacardi began to pump money into their own economy brands such as Bells. As a result the opponent was not beaten otherwise his 2 own more expensive brands - Johnnie Walker Red Label and the White Horse were suffered.

 

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