Large Russian retailers are increasing their own imports of wine and spirits
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Large retailers are increasing their own imports of wine and spirits, which at the end of 2023 grew by 7%, to more than 520 million liters. The top five importers included X5 Group, Bristol, including the Krasnoe&Beloe and Magnit chains, and distributors in these conditions focus on restaurants and wine stores. In 2024, market participants and experts expect a decrease in import volumes, pointing to already significant reserves for some items.
Retailers took the majority of places in the top five largest importers of alcohol to Russia at the end of 2023, as follows from data available to Kommersant from market participants. X5 Group (Pyaterochka, Perekrestok) increased total imports of wine and spirits by 18%, to 44.4 million liters. Mercury Retail’s Bristol and Krasnoe&Beloye imported 37.9 million liters, which corresponds to third place. And Magnit increased imports by 83%, to 28.5 million liters, taking fifth place. The figures do not take into account imports from EAEU countries.
The Russian structure of Bacardi (brands Martini, Dewars), according to data available to Kommersant, imported 38 million liters of wine and spirits in 2023, taking second place. Novabev Group, which is developing its Vinlab network, produced 35.8 million liters, which corresponds to fourth place. Year on year, companies increased imports by 28% and 34%, respectively. Among ten importers, the total import of wine and strong alcohol, according to data available to Kommersant, was reduced by Luding Group and Simple Group – by 20% and 24%, to 28.3 million liters and 16.8 million liters, respectively. These companies did not comment on the results.
The head of WineRetail, Alexander Stavtsev, says that the largest chains have recently been refusing the services of technical importers who imported alcohol on order, as this scheme has become less stable in the current conditions. In addition, the expert notes, foreign alcohol suppliers now mainly work with clients from the Russian Federation on an advance payment basis, which means that technical importers need financing. “Krasnoe&Beloe”, judging by Kommersant’s data, began to develop its imports only in 2023.
X5 Group said it is increasing supplies of wines from Georgia, Azerbaijan, South Africa, Argentina, Armenia, while maintaining import volumes from Europe, and has increased imports of whiskey from new suppliers. In 2024, they also plan to develop imports from Asian and Latin American countries. Magnit explained the growth in volumes by the low base of 2022, adding that they do not see prerequisites for increasing alcohol imports in 2024. Krasnoe&Beloye declined to comment.
The Fort wine trading company, according to its executive director Alexander Lipin, is increasing its presence in HoReCa and wine stores in an increasingly focused retail environment on its own imports. He notes that given the fairly high average price of a bottle, the company’s imports in money terms in 2023 increased by 9%, despite a 13% decrease in liters. Mr. Lipilin expects that over time the chains will adjust their import strategy, retaining the most popular positions for themselves, and will return the wines of importers.
The total import of wine and spirits to Russia in 2023, according to data available to Kommersant, increased year-on-year by 7%, to 520.8 million liters, excluding the EAEU. Supplies of wine, the import of which from unfriendly countries has been subject to increased duties since August 2023, increased by 1%, to 428.4 million liters. Imports of strong alcohol increased by 45%, to 92.38 million liters, including 37.4 million liters of whiskey. According to the data available to Kommersant, the first two places in terms of import volumes among strong alcoholic beverages were occupied by Johnnie Walker (Diageo) and Jack Daniels (Brown-Forman), permitted for parallel imports.
AST General Director Leonid Rafailov explains that with the departure of some of the owners of global alcohol brands, who were also the only distributors, from Russia, the import of such drinks ceased to be structured. Several players are involved in supplying the most popular items at once, which leads to a sharp increase in import volumes and, in some cases, the accumulation of stock that can last for six months to a year, he points out.
The head of the wine portfolio of Luding Group, Evgeny Shcherbakov, predicts that in 2024, imports of wines from unfriendly countries will continue to decline, wines from the EU will become more expensive, and supplies from friendly countries may increase by 10–15%. The group also expects an increase in imports of cognac, whiskey and tequila. Alexander Lipilin says that many players will seek to increase imports before the increase in excise taxes on wine in May 2024. By the end of 2024, he expects a decrease in imports by about 30%, if there are no sharp fluctuations in the ruble exchange rate. Mr. Stavtsev adds that imports may be held back by continuing difficulties with payments through foreign banks.
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