Cocktails are being raised – Newspaper Kommersant No. 39 (7484) dated 03/07/2023

With the expected stabilization of demand for traditional spirits, alcohol producers are looking for new niches. For example, Ladoga, which produces Tsarskaia vodka, launched a line of cocktails with a strength of 30–35% under the brand name. But other players see more prospects in low-alcohol drinks, which occupy 90% of the cocktail category.

A large producer and distributor of alcohol Ladoga (Tsarskaya vodka, Barrister gin, Fowler’s whiskey, etc.) has begun producing 30-35% ABV cocktails under the Tsarskaya brand, the company told Kommersant. They say that this is the first such product from Russian manufacturers. The line includes Black Russian based on vodka, Negroni with gin and liquor, as well as Old Fashioned and Manhattan based on whisky. The recommended retail price is 620 rubles. for a bottle of 0.5 liters. The product is intended for all sales channels, as long as it is available in the Ladoga Wine chain. By the end of 2023, Ladoga plans to sell 600,000 bottles.

Ladoga President Veniamin Grabar notes that in Russia the ready to drink (RTD) alcoholic beverages market is represented by low-alcohol cocktails in small containers that are drunk immediately, while the Ladoga product is for delayed consumption. According to him, there is already a trend for strong sweet alcohol abroad, and in Russia in three to five years the volume of the segment of strong cocktails of deferred consumption may reach 1 million decalitres. Ladoga plans to expand its line of strong cocktails, as well as launch low-alcohol drinks under other brands.

Alcoholic Siberian group (ASG; “White Birch”, “Five Lakes”, “Husky”, “Sibbitter”) plans to launch a line of bar cocktails under the brand name “Husky” on 12% vodka with a cost of up to 100 rubles. for 0.33 l, they say in the company. They note that over the past two years, sales of cocktails in the Russian Federation have been growing at a double-digit pace, and the market volume has approached 3 million decaliters, and 90% of sales are occupied by low-alcohol drinks in a can at a price of up to 100 rubles. “We expect to attract a young audience to the brand, for whom this format of vodka consumption is more attractive,” they say in the ASG.

Tatspirtprom (Tundra, Russian Currency, Khanskaya) say they plan to launch cocktails under a new brand and are still exploring the market. They note that RTD drinks show good sales growth if they are produced under such strong umbrella brands as Jack Daniels & Cola, Absolut Mixt, etc. In addition, Tatspirtprom is working on launching the production of low-alcohol drinks. Rust Group, which already produces Bravo and Shake cocktails with a strength of about 7%, noted that the segment of strong ready-made cocktails has long been on the world market, but remains narrow.

Stanislav Kaufman, the owner of the Kaufman brand agency, says that for about 15 years there has been an attempt to distribute Alize cocktails in Russia, but even in the face of growing consumer optimism, the product turned out to be unclaimed. According to him, consumers are more accustomed to drinking cocktails in bars and mixing themselves at home. In addition, the Tsarskaya brand chosen by Ladoga does not go well with foreign cocktail names, the expert adds.

Alexander Stavtsev, head of the WineRetail information center, notes that sales of flavored strong alcohol in Russia are growing, including “male” bitters. Sales of strong cocktails, he says, will depend on the “taste hit” that Ladoga, for example, has managed to do with gin, as well as the perception of the brand. As the expert notes, it is possible that bars and restaurants operating in the inexpensive segment will be more interested in ready-made cocktails, given the rise in price of imported alcohol and interruptions with some foreign brands. The founder of the Rakovaya chain, Yevgeny Nichipuruk, believes that ready-made, inexpensive strong cocktails can only be in demand in establishments whose guests choose the product primarily by price.

Director of CIFRRA Vadim Drobiz expects that the demand for basic alcoholic beverages in Russia will stabilize by the end of this year. In such conditions, small free niches can be interesting, he adds.

Anatoly Kostyrev