Former head of Diageo in the Russian Federation Oleg Kharitonov became CEO of the Campari division

One of the few global alcohol companies remaining in Russia, the Italian Campari Group, which owns the Aperol brand, has replaced the head of its local division. He became the former general director of the British Diageo, which left the market, Oleg Kharitonov, who also worked at the Rust Group of Companies and Efes. In the absence of most global competitors, Campari will try to increase sales in the Russian Federation, including in the growing categories of aperitifs and sparkling wines, experts say.

The former head of Diageo (brands Johnnie Walker, White Horse, Captain Morgan, etc.) in Russia Oleg Kharitonov in February became the general director of the division of the Italian Campari Group Campari Rus LLC, follows from the Unified State Register of Legal Entities. The former head of Campari in Russia, Luca Romano, has taken the position of chief financial officer of the Italian confectionery manufacturer Bauli Group, the group announced this week on LinkedIn.

Oleg Kharitonov was the CEO of Diageo in Russia in 2019–2021, having previously worked in the company in various positions since 2006. Previously, he headed a division of the Rust Group of Companies (Russian Standard, Green Mark) and worked at the Efes brewing company. It was not possible to contact the top manager. The Italian and Russian offices of Campari did not immediately respond to Kommersant.

Campari Group has been around since 1860 and is headquartered in Milan. It is considered the world’s sixth largest producer of premium alcohol with the brands Aperol, Campari, Mondoro, Cinzano, etc. As of January 31, 82.5% of the group was owned by Luxembourg-based Lagfin SCA, which, according to the Campari report, is controlled by Luca Garavoglia.

After the outbreak of hostilities in Ukraine, Campari announced the cessation of investments and reduction of business in Russia. But unlike such players as Diageo, Pernod Ricard (Chivas Regal, Jameson), Beam Suntory (Jim Beam), Brown-Forman (Jack Daniel’s, Finlandia), it did not completely stop operations in the country. According to data from market participants available to Kommersant, in 2023 Campari Rus imported 7.9 million liters of alcoholic beverages, which corresponds to the level of 2022. The company’s imports of sparkling wines alone increased by 11% year-on-year, to 4.5 million liters, which corresponds to sixth place among suppliers in the category excluding champagne. In addition, it follows from the data available to Kommersant that Campari Rus in 2023 increased the import of Old Smuggler whiskey and Espolon tequila.

Senior consultant of Kontakt InterSearch Russia Anastasia Vyalikova says that the change of the general director of the Russian office of Campari corresponds to the trend “to localize the top management of global companies.” According to her, at a certain stage the division does not need close control from headquarters and the political situation favors the appointment of a local specialist who can more easily negotiate with regulators and counterparties. Ivan Klimanov, head of the Consumer Market practice at First (Ward Howell group), says that the Russian market today is going through changes that require a quick response and knowledge of the specifics, which could become a decisive factor in choosing a leader. Oleg Kharitonov’s experience is also noted by AST General Director Leonid Rafailov. He is confident that the top manager will continue the expansion of Campari brands in Russia.

The executive director of the Fort wine trading company, Alexander Lipilin, says that after the departure of most competitors, Campari and Bacardi (Martini brand) are the only notable alcohol groups working directly with Russia that retain their entire supply structure. Taking advantage of the moment, companies will increase sales, he believes. The head of WineRetail, Alexander Stavtsev, clarifies that Campari in Russia remains a strong player in the aperitif category, in which it plans to launch the Sarti Rosa brand (see Kommersant on January 11). Also, he points out, the company may be interested in increasing its market share of sparkling wines under the Mondoro brand.

Aperitifs and sparkling wines are among the growing alcohol categories. According to the national retail audit NielsenIQ, in 2023, sales of aperitifs grew by 16.1% in liters and by 7.7% in money, sparkling wines by 8.9% and 12.8%, respectively. The share of foreign brands of sparkling wines increased over the year from 26.3% to 30%, according to NielsenIQ.

Anatoly Kostyrev