“Magnit” will be poured tequila – Newspaper Kommersant No. 45 (7490) of 03/17/2023
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Large retail chains developing their alcohol imports are expanding their presence in the alcohol market. So, Magnit, together with Tatspirtprom, will launch the distribution of Sombrero tequila, which is currently exclusively presented in the network, in HoReCa and some retail outlets. This should increase brand awareness and increase sales, but competition in the tequila category will increase.
Magnit has agreed with Tatspirtprom on the distribution of Sombrero tequila, exclusive to the chain, in other channels, the companies told Kommersant. Magnit itself imports this tequila from Mexico only for its stores. This summer, Tatspirtprom is to start supplying Sombrero to the HoReCa segment, non-network retail and part of regional chains. Magnit will continue to develop brand sales within the network and increase direct imports.
The partnership should boost brand awareness and potentially double sales, the companies say. Now, according to their data, Sombrero occupies 5.5% of the tequila category in the Russian Federation, in 2022, sales of the brand in Magnit in money terms increased by 50%. Magnit added that they are exploring the possibility of launching a similar distribution system for other exclusive and own brands of strong alcohol.
Managing more than 26.7 thousand stores, Magnit is one of the major importers of alcohol. According to Kommersant’s data from market participants, in 2022, the structure of the Retail Import network imported 15.5 million liters of alcoholic beverages, excluding the EAEU. Owned by the government of Tatarstan, Tatspirtprom was the second vodka producer in the country in 2022 (Tundra, Russian Currency, Khanskaya brands), also produces tinctures, liqueurs, beer, etc.
Alexander Stavtsev, head of the WineRetail Information Center, says that Magnit will be able to increase the volume of its own imports, increase its efficiency, and the partner will take care of the difficulties associated with distribution. Working with Tatspirtprom will give access to the Tatarstan market, where it is difficult for a third-party player to enter, as well as to the company’s wide customer base throughout the country, he notes. Alexander Lipilin, executive director of the wine trading company Fort, adds that Magnit, by expanding sales channels, will be able to increase the loyalty of the Sombrero supplier. But, he notes, the inclusion of another link in the supply chain can increase the final price of the drink by the distributor’s margin. In “Magnet” Sombrero Silver costs 719 rubles. for a bottle of 0.5 liters, excluding discounts, follows from the chain’s catalog.
Azbuka Vkusa says that they are negotiating the supply of unique alcohol of their own import, primarily wine, with a large restaurant holding and other organizations. The chain also plans to sell groceries, soft drinks and meats. The largest importer of alcohol in the Russian Federation, X5 Group (Pyaterochka, Perekrestok), Krasnoe & Beloe, Globus and Metro did not provide any comments.
The choice of tequila is probably related to the vacant niche in the category. According to Kommersant’s data, in 2022, tequila imports to the Russian Federation decreased by 34%, to 2.34 million liters. For comparison, whiskey imports decreased by 52%, to 18.17 million liters, gin – by 36%, to 1.73 million liters, rum – by 14%, to 6.19 million liters. Yury Karyakin, deputy general director of Tatspirtprom, noted that the supply of tequila in Russia is limited, and Sombrero supplies to the country are established and are stable.
Ladoga Development Director Dmitry Isachenkov says that the company is resuming tequila supplies, which were complicated by a shortage of glass from suppliers, and also plans to supplement the assortment with three new producers in different price segments. This year, Ladoga expects to increase tequila imports by 50% yoy. Andrey Ushakov, Marketing Director of Luding Group, says that so far tequila accounts for less than 1% of alcohol turnover in Russia, and in 2022, sales of the drink decreased by almost 15% due to the departure of global brands with a significant share in the category. Tequila Don Julio, for example, was in the portfolio of Diageo, who left the Russian Federation. In connection with this, the Luding Group plans to launch its own brand of tequila Corritos. As Andrey Ushakov noted, in order to promote a product, it is important to increase the brand’s presence in all channels.
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