Ladoga began importing its Kubao whiskey brand from China

Spirits producers are experimenting with contract manufacturing abroad. Thus, Ladoga began producing whiskey under its Kubao brand in China for the Russian market, hoping to take 25% of sales of Chinese whiskey in the country with the new brand. In the chosen price segment, they will have to compete with well-known brands, experts point out.

Alcohol producer and distributor Ladoga (Tsarskaya, Barrister, Fowler’s, etc.) began producing whiskey under its Kubao brand at the Chinese Goalong Distillery for supplies to Russia, Ladoga told Kommersant. They clarify that the first batch of 16 thousand bottles has been imported and partially distributed through distribution channels. In Ladoga wine stores, this whiskey sells for 1.7 thousand rubles. per 0.7 liter bottle in gift packaging. For now, Ladoga is working with Goalong Distillery under a contract bottling scheme and on an advance payment basis, while simultaneously negotiating on parity investments, says Ladoga President Veniamin Grabar.

Goalong Distillery is considered a major producer of malt whiskey in China. Part of the Goalong Group. Produces and exports whiskey, brandy, vodka, gin, etc. under the brands Goalong, Bosolac, Ambiguous, and also produces drinks under third-party brands under contract. Goalong Group did not provide comment.

Based on the results of January-November 2023, more than 380 thousand liters of whiskey from China were imported into the Russian Federation, as follows from the data of market participants available to Kommersant. This is comparable to the volume of imports from Spain and Japan – 400 thousand liters in each case. By comparison, about 19.9 million liters of whiskey were imported from the UK during this period. The Goalong brand is available on the Luding online storefront for ordering at prices ranging from 2 thousand to 6.8 thousand rubles. per bottle 0.8 l.

As Mr. Grabar explains, existing whiskey brands in China did not suit Ladoga in terms of quality or available volumes. While the Chinese whiskey segment in the world and in the Russian Federation is poorly developed, all brands are in the same conditions, and it was decided to rely on its own brand, he points out. Secretary of the Alcopro guild Andrey Moskovsky notes that with contract bottling, the customer receives not only the best price, but also the risks associated with sales, as well as promotion costs. Ladoga wants to occupy 25% of the Chinese whiskey segment in the Russian Federation in volume.

Alexander Lipilin, executive director of the Fort wine trading company, says that prices for famous whiskey brands in Russia have increased significantly, which encourages consumers to try new things. But, he points out, in the price category of 1.7–2 thousand rubles. per bottle you can find brands such as Johnnie Walker Red Label, for cocktails this price is high, and at a cost of 1.1–1.2 thousand rubles. and excellent quality there are chances for success. Andrey Moskovsky notes that there is still a small proportion of whiskey connoisseurs who are ready to experiment with flavors, regardless of the brand’s popularity. But overcoming skepticism about Chinese alcoholic drinks will require increasing marketing budgets, he adds.

The Alcohol Siberian Group, which imports The Officer’s Choice and Sterling Reserve whiskeys from India, says that Indian whiskeys occupy a large share in the world, and do not see any prospects in drinks from China. The Rust Group of Companies (Darrow whiskey) believes that in 2024 the demand for local whiskey from Scottish distillates will continue to grow on the Russian market. In 2024, they add, Rust is ready to supply more than 900 thousand liters of whiskey to the market. Commercial Director of Stellar Group (Steersman, Mancatcher, Old Barrel) Alexander Grevtsov also sees potential in increasing whiskey production in Russia. And in the cognac segment, the group began bottling the Pierre Lacroix brand in France and plans to launch production of sparkling wine in Italy for the Russian market, he says. The Alvisa Group of Companies said that they bottle Nucky Thompson whiskey in Spain from Scottish distillates, developing the brand as an international one.

Andrey Moskovsky predicts that for now Russian producers will focus on local bottling and production of their own grain whiskey, since the cost of such a drink will be much lower than on any foreign site. According to NielsenIQ, in January-November 2023, whiskey sales in the Russian Federation grew by 9.5% in volume and by 4.5% in money year-on-year.

Anatoly Kostyrev