Whiskey changes registration

Trade restrictions are forcing alcohol companies to optimize the production of beverages. Thus, Rustam Tariko Group of Companies, after stopping the supply of Scotch whiskey, transferred the spill of its Darrow brand from Scotland to the Moscow region. And the manufacturer of cognac “Old Koenigsberg” could switch to Georgian distillate instead of French. Localization should not change the taste of the drink, but the risks of dependence on imported raw materials remain, experts say.

A major alcohol producer is Rust Group (brands Russian Standard, Zelenaya Marka, etc.) Rustam Tariko transfers the bottling of his Darrow whiskey from Scotland to Russia, follows from the data of the Federal Accreditation Service. In September, the structure of the Parliament Production group received a declaration of conformity for the production of Darrow at a plant in the Moscow region. And before that, the company declared a distillate of Scotch whiskey supplied by the British Glen Turner Company Ltd.

Rust launched Darrow production in 2019 at the facilities of the Scottish distillery Ian Macleod Distillers (IMD). With this brand Rust planned to take 10% of the Russian whiskey market. After the outbreak of military operations of the Russian Federation in Ukraine and a new wave of Western sanctions, the supply of Scotch whiskey to Russia stopped by the decision of the local association of producers, market participants told Kommersant.

The Rust Group of Companies told Kommersant that they could not continue the supply of IMD whiskey to the Russian market for objective reasons. The global practice of bottling Scotch whiskey in the country where the drink is sold and consumed has contributed to the localization of Darrow production, and Parliament Products is able to meet the growing demand for whiskey in Russia, the group added. Rust plans to produce nearly 100,000 nine-litre boxes of whiskey this year. Russian-made Darrow is already on the WineStyle online showcase for 1.18 thousand rubles. for a bottle of 0.5 l, but not yet available for order. Released in Scotland, Darrow is sold for 1.78 thousand rubles. for the same amount.

Stanislav Kaufman, the owner of the Kaufman brand agency, says that with the right organization of production, it will not be difficult to start bottling whiskey from imported spirits at the Russian site, and such a drink should not differ in taste from that produced abroad. In the segment of inexpensive whiskey, Russian-made brands are in demand, he points out.

In addition, Vadim Drobiz, director of CIFRRA, adds that the Darrow brand is already known to customers and the label design, apparently, will not change. According to his estimates, of all whiskey sold in the Russian Federation, about 35% of the drink is produced locally, and in the future this figure may rise to 70–75%.

In the alcohol market, it was the whiskey category that suffered the most from trade restrictions. According to Kommersant’s data, in January-September, the supply of the drink to the Russian Federation decreased by 57% year-on-year, to 10.9 million liters, only in the third quarter – by 71%, to 2.9 million liters year-on-year. For comparison: imports of rum for the first nine months of this year decreased by 20%, gin – by 39%, tequila – by 42%. Although whiskey imports may pick up now. In early November, a number of whiskey and bourbon brands (Johnnie Walker, Jack Daniel’s, Bushmills, Jim Beam, White Horse, etc.) were allowed for parallel imports. As reported in the Ministry of Industry and Trade, retail chains are already starting such deliveries.

Due to geopolitical complications, it was not only Rust Group that had to optimize production. The Kaliningrad plant “Alliance-1892” (brand “Old Koenigsberg”), follows from the register of the Federal Accreditation Service, could start buying cognac distillate from Georgia. Before the crisis, the company probably used distillates from France, but difficulties arose with their supply, which cost “Alliance-1892” market share. According to market participants, in January-September 2022, Alliance-1892 produced 634 thousand decalitres of cognac, which is 12% less than in the same period a year earlier.

The “Alliance-1892” did not provide an operational comment. As Kommersant’s interlocutors said, switching to distillates from Armenia or Georgia for the plant threatens to increase the cost of logistics and increase costs. According to Stanislav Kaufman, the problem of dependence on imported raw materials in the alcohol market remains, and there may be difficulties with its import in the future.

Anatoly Kostyrev