The brands of the closed KiN plant will be able to be produced by another manufacturer

Some brands of the closed Moscow wine and cognac factory KiN, which was one of the top five cognac producers until 2021, may return to the shelves. Production of the brands “Old City”, “A. Bergerac”, as well as “Matryoshka” and “Katyusha” vodkas, plans to resume the Tolyatti plant “Rosinka Distillery”. During the absence of brands, consumers could find an alternative and would have to compete with major players at the expense of price, experts warn.

Rosinka Distillery JSC received declarations for the production of cognac and vodka under brands that were part of the portfolio of the Moscow wine and cognac factory (MVKZ) KiN, it follows from the data of the Federal Accreditation Agency. The declarations indicate cognacs “Old Town”, “A. Bergerac”, vodka “Matryoshka” and “Katyusha”.

Rosinka Distillery operates a plant in Togliatti with a capacity of more than 54 million bottles of spirits per year. Previously, the company’s shareholder was a large wine producer, CJSC Sparkling Wines (Lev Golitsyn brand), which sold its share in 2022 (see Kommersant of May 29, 2023). Now Rosinka Distillery is part of the Vingorod group, which, according to its own data, also includes the Crimean winery Askeri, Taman Tavinko, Ironsan in South Ossetia. Vodka “Katyusha”, four-year-old and six-year-old cognac “Old City” are listed in the list of Rosinki Distillery products in the Vingorod catalog. The group did not provide a comment.

MVKZ was founded in 1940, in 2020 it was one of the top five cognac producers in Russia. But in 2021, the company suspended the operation of the site on Leningradskoye Shosse, explaining the decision by the Moscow government’s policy of moving production out of the city and the need to optimize costs. The flagship brand of the Kinovsky plant was purchased by Alvisa Group of Companies in the same year (brands “Elder”, Nucky Thompson, etc.). JSC MVKZ has been in the process of liquidation since the spring of 2022. The remaining brands of the plant, including “Old City,” belong to the former distributor of MVKZ, Eurotrade LLC, according to Rospatent data.

Kommersant’s interlocutors on the market say that the former MVKZ team tried to sell the remaining brands and structures associated with the Vingorod group may become the new owners of some of the brands. The general director and owner of Eurotrade, Alexander Egorov, did not answer Kommersant’s questions.

The owner of the Kaufman brand agency, Stanislav Kaufman, notes that cognac consumers are very conservative and remain committed to their chosen brands for a long time, so it will be difficult for Old Town to return to the market after a break. During the absence of the drink on the shelves, former buyers of this drink have already switched to alternatives, he points out. And MVKZ vodka brands, adds Mr. Kaufman, never occupied a significant market share and were in demand mainly as souvenirs.

Secretary of the Alcopro guild Andrei Moskovsky says that in retail chains among Russian cognacs in the economy segment, a significant share is occupied by the Old Barrel (Stellar Group) and Elder brands. “Old Town” may try to compete on the basis of price, but given the already relatively low cost of such drinks, this should be difficult, the expert points out. Thus, on the online storefront of Perekrestok, a five-year-old Old Barrel costs RUB 619.99. per bottle 0.5 l. The current minimum retail price (MRP) for cognac is 517 rubles. per bottle 0.5 l. From June 1, the MRP for a drink may increase to 556 rubles. for 0.5 liters, according to the draft order of the Ministry of Finance. Stellar Group and Alvisa Group did not provide comments.

There is no talk yet about a return to the previous production volumes of the “Old City” at new capacities, says Vadim Drobiz, director of CIFRRA. At the same time, according to him, the MVKZ brands have become recognizable, especially in Moscow and the surrounding regions, so the relaunch may not require large investments in marketing. Risks, according to the expert, may be with the availability of raw materials, taking into account the ban on the use of imported distillates for the production of cognac in Russia introduced in 2028. According to Rosalkogoltabakcontrol, in January-March 2024, cognac production in the Russian Federation increased by 3.67% year-on-year, to 1.91 million decaliters.

Anatoly Kostyrev