Liquor dealers propose to allow parallel import of alcohol to Russia

In this case, prices will triple

Lovers of elite foreign alcohol, who have lost access to their favorite drinks due to sanctions and the departure of the owners of popular brands from our country, will be able to breathe easy. In any case, if the government responds to the proposal of the Association of Retail Companies (AKORT), which has taken the initiative to include a number of brands in the list of goods allowed for parallel import to Russia.

Industry experts welcome the idea, although they warn that higher costs for “indirect” liquor delivery will double or triple the price of branded liquor.

In a letter to Deputy Prime Minister Dmitry Grigorenko, representatives of AKORT, whose members are the largest Russian retail chains, asked the government to include alcohol in the list of goods allowed for parallel import to Russia.

Since some of the world’s alcohol suppliers have already left the Russian market or announced their departure in the near future, domestic consumers may face a shortage of familiar spirits, especially the elite category.

“It is not possible to replace these goods – there are no analogues and technologies to establish their production. The commitment of Russians to specific brands in this segment is much higher than in other product groups. Distributors work on the remnants of goods, actively reducing the range. No new deliveries have been announced,” the initiators of the proposal note.

Although official statistics on foreign trade have not been published since spring, wholesale and retail importers are sounding the alarm, claiming that imports of strong alcoholic beverages into Russia fell by 34% in the first six months. The whiskey market sank the most — by 48%. Imports of cognac and brandy decreased by 11%, liqueurs by 36%, and gin by 26%. Foreign purchases of tequila, fruit distillates and other categories decreased by a third.

True, experts do not expect a crisis on the alcohol market. According to Vadim Drobiz, director of the Center for Research on Federal and Regional Alcohol Markets, the absence of these brands will affect the lifestyle of every tenth Russian who prefers premium alcohol, while other consumers who prefer simpler and cheaper alcohol will not notice the changes.

Ruslan Bragin, a member of the Guild of Marketing Experts and an expert on the alcohol market, believes that the loss of some imported products may result in the division of consumers into several categories. Gourmets, tuned in to strictly defined brands, will agree to overpay to enjoy the tastes of their favorite strong drinks. Others will taste similar but cheaper liquor that will not differ much in quality from the original brands. Still others will have to compare the size of their budget with the possibility of acquiring high-quality elite alcoholic beverages and make a choice – what and for how much to buy and drink.

At the same time, the principle of parallel export implies the purchase of goods by intermediaries in third countries. Under the existing conditions, elite brands of alcohol will go to Russia through neighboring states, in particular, through Armenia and Kyrgyzstan. A number of alcoholic beverages, in particular gin, domestic producers are quite capable of replacing with their own analogues. Other alcohol-containing elixirs, the technology of which involves the use of cereals, berries or fruits grown in certain natural areas of the planet, cannot be replaced, so their cost risks skyrocketing due to the complication of the logical chain – crossing several borders, fiscal deductions to customs services, payment for storage and transshipment works. As a result, the cost of familiar Western brands for the end buyer in Russia may increase by 2-3 times.

Published in the newspaper “Moskovsky Komsomolets” No. 28850 dated August 19, 2022

Newspaper headline:
Alcohol will flow in parallel