The export of Russian vodka collapsed: producers headed to the East

But in China, few people buy their products.

The export of Russian vodka in the first quarter of 2023, compared to the same period in 2022, decreased by 76.7% to $6.33 million in monetary terms. This is evidenced by the data of the Federal Customs Service. The situation is caused by a ban on deliveries to the EU countries, the USA and Canada, that is, to markets that previously accounted for up to a third of the total volume of strong alcohol exported from Russia.

The European embargo was included in the sixth package of sanctions approved by Brussels in July 2022. The United States banned the import of Russian vodka back in March, and Canada began restricting supplies in February. As a result, manufacturing companies began to reorient themselves to other areas, primarily to the markets of the CIS, the Middle East, India and the Asia-Pacific region. Despite the difficulties with logistics, shipments increased to Israel, the countries of Africa, and Central Asia.

“Distilleries, brand owners around the world traditionally choose key markets for export, countries with a high standard of living and maximum financial opportunities. First of all, these are the USA and Western Europe (Germany, France, Great Britain, Italy), where the lion’s share of our exports went, – explains Ruslan Bragin, a member of the Marketing Guild, an expert in strong alcohol marketing. – In connection with all the known military and political events, the collective West announced a boycott of Russian vodka. In March-April last year, a lot of videos appeared on YouTube video hosting, in which American and European bartenders and ordinary consumers defiantly pour vodka down the drain.”

What is interesting, says the interlocutor of “MK”, ​​at first, many participants in this spontaneous protest did not make a difference between Russian, Ukrainian or Polish products. Apparently, out of deep ignorance. And then on the same YouTube they began to upload videos with detailed instructions on how to distinguish the Russian brand from, say, the Polish Belvedere Vodka, and even more so from the Ukrainian brand.

“Of course, the losses are serious. However, our producers intend to expand the geography of exports through countries that do not sabotage deliveries. For example, Vietnam, says Bragin. – By the way, none of the Russian brands (we have 6,000 of them) have succeeded in China, although this is an immense market, and our vodka is available in retail there. The fact is that its aromatic profile is not consistent with the preferences of local consumers.