Magnit and Abrau-Durso launched the production of chocolate truffles with sparkling wine

Large Russian winemakers are launching products under their brands into new markets. Thus, the Abrau-Durso Group of Companies of the family of Boris Titov agreed to produce chocolate candies at the facilities of the Magnit network, which the partners are going to sell exclusively in their channels. The launch of the product may support the company’s wine sales, but partners should not count on a significant share of the confectionery market, experts say.

The confectionery factory of the Magnit chain has launched the production of chocolate truffles with sparkling wine in collaboration with the Abrau-Durso Group of Companies, representatives of the parties told Kommersant. The Abrau-Durso Sparkling Truffle line will include several items with different tastes. The products will be sold exclusively in Magnit stores and Abrau-Durso boutiques. During the high season, from early December to early March, Magnit plans to sell more than 1 million packages. The cost of candy during the holiday period is 199 rubles. per pack of 160 g, regular price is not announced. The parties do not disclose the financial terms of cooperation.

Marketing Director of Abrau-Durso Group of Companies Vasily Dmitriev says that the initiative for cooperation came from Magnit, and for the group this project is an additional opportunity to popularize the brand. Magnit noted that the project with Abrau-Durso is the first experience of partnership with a major brand in its own production, aimed at creating a unique assortment. The chain plans to continue launching joint projects with well-known brands in its own factories, seeing the greatest prospects in categories such as confectionery, frozen foods, snacks, tea and coffee.

The owner of the Kaufman brand agency, Stanislav Kaufman, says that the partners could agree to share revenues from the sale of a new product, or Magnit, in exchange for profits from the sale of sweets, could reduce the markup on the Abrau-Durso wine line. The head of WineRetail, Alexander Stavtsev, says that Abrau-Durso has one of the strongest brands on the Russian sparkling wine market, which the company is trying to develop in different categories. According to him, any brand has limits on sales volumes, and it becomes difficult to expand them through one product. Confectionery, like alcohol, are goods of emotional demand, and, perhaps, sweets will additionally support sales of Abrau-Durso wines at Magnit, notes Mr. Stavtsev.

Fanagoria CEO Petr Romanishin says that the company is developing a project to produce Extra Virgin grape seed oil with a capacity of more than 150 tons per year, produces aged vinegars, varietal juices, a non-alcoholic Zero line, and is also developing new products in different markets. According to him, this allows one to significantly diversify the business and helps attract the attention of non-wine consumers. Kuban-Vina said that they had experience in creating wine ice cream under the Aristov brand and cosmetics under the Chateau Tamagne brand, which are sold in one of the Krasnodar establishments and the winery’s branded network, respectively. Kuban-Vino does not plan to launch any new products, noting that it sees development specifically in the wine direction.

President and co-owner of the Moscow Pobeda confectionery factory Vitaly Muravyov says that in Europe similar joint projects in the confectionery market had local successes, but did not receive a significant share. According to him, selling at Magnit will give an advantage, but the chain’s factory produces mainly economy-segment products. Chocolate sales in the year to October 2023 fell 5.3% to 5.4% in volume depending on packaging, but rose 2.2% to 5.9% in value terms, according to retail audit NielsenIQ.

Anatoly Kostyrev