The owner of the Aperol brand is trying to ban its third-party imports to Russia

The remaining global alcohol companies in Russia are not relaxing control over the supply of their products. Italian Campari is trying in court to prohibit the distributor Master-Trade from importing and selling the Aperol drink, including due to the absence of this brand in the list of those available for parallel import. Deliveries under this scheme are still rare in Russia, experts say. And lawyers point out that the importer can prove dishonesty and restrictions on Campari’s business in the Russian Federation, opening a “Pandora’s box” for other distributors.

Davide Campari-Milano NV, a structure of the Campari Group, appealed to the Arbitration Court of the Rostov Region with a statement to prohibit the local distributor Master-Trade from importing and selling drinks under its Aperol brand. Kommersant found this information in the file cabinet of arbitration cases. A hearing in the case is scheduled for October 30. Campari also announced interim measures in the form of a ban on the release of goods, indicating that it did not consent to the supply, and the Aperol brand is not allowed for parallel import, but the court refused to accept them. As stated in the court materials, Campari was asked to confirm the violated right.

After the outbreak of hostilities in Ukraine, Campari announced the cessation of investments and reduction of business in the Russian Federation. According to data from market participants available to Kommersant, in January-July 2023, Campari Rus imported 3.12 million liters of alcohol compared to 3.58 million liters a year earlier. The company’s revenue in 2022 increased by 20.9%, to 7.5 billion rubles, net profit amounted to 507.6 million rubles.

“Master-Trade,” it says on its website, supplies Trozo and Lamazi wines, Campbell Meyer & Company whiskey, and Shaman’s vodka. According to the Unified State Register of Legal Entities, the company is owned by Dmitry Egurnov, who controls the Master-Torg distributor operating in the DPR and LPR. Campari and Master-Trade did not provide comments.

Some global alcohol companies, including Diageo (Bell’s, Johnnie Walker, Captain Morgan) and Pernod Ricard (Chivas Regal, Jameson), decided to close their representative offices in the Russian Federation, while Campari, along with Bacardi (Martini brand), continue to operate. The head of WineRetail, Alexander Stavtsev, notes that it is logical for the players remaining on the market to try to “protect the territory” by preventing the uncontrolled import of their drinks, which in this case could be supplied cheaper. Alcohol permitted for parallel import can now have up to ten importers in one region, he points out. Brands not on the list, according to the expert, can enter the Russian Federation bypassing copyright holders, but these are rather isolated cases. Russian Bacardi refused to comment on possible claims against third-party distributors. Master-Trade, according to the Russian Accreditation Agency, along with declarations for Aperol, also received a declaration for the supply of Martini Asti.

President of the customs and logistics broker “KVT Service” Yulia Shlenskaya points out that if a brand is included in the Customs Register of Intellectual Property Objects (TROIS) and is not allowed for parallel import, customs requests permission from the copyright holder to release the goods. But if he remains silent, customs can release the goods if they find no signs of counterfeit, she points out. Campari, Ms. Shlenskaya believes, may not have responded to customs on time. The Federal Customs Service told Kommersant that they protect the rights to brands included in TROIS, and the lack of consent of the copyright holder is not a basis for refusing release.

Vasily Zuev, head of the intellectual property practice at Intellectual Capital, believes that in this case it will be difficult for the importer to prove the legality of his actions, since the law does not make exceptions in matters of the legality of using exclusive rights to a trademark. Semenov & Pevzner partner Yulia Yarnykh says that Master-Trade can refer to the abuse of the plaintiff’s right with a place of origin from an unfriendly country, proving the restriction of business in the Russian Federation. And Konstantin Suvorov, a partner at Kosenkov and Suvorov, notes that an importer who can prove that the copyright holder has restricted the import of goods due to compliance with the sanctions regime will “open Pandora’s box,” which is what many companies are waiting for.

Anatoly Kostyrev