Winemakers produce new drinks – Newspaper Kommersant No. 198 (7399) of 10/25/2022

The limited supply of grapes is forcing winemakers to develop new market segments. So, the Krasnodar enterprise “Soyuz-Vino” can start producing cider. Sales of the drink are growing by more than 10% against the backdrop of a decrease in beer imports, but market participants see risks in a decrease in purchasing power.

Soyuz-Vino LLC has registered a declaration of conformity for the cider line under the St. Vionne”, follows from the Rosaccreditation register. The product description includes semi-dry and sweet cider, as well as a drink with a cherry flavor. The production site is the Soyuz-Vino enterprise in the Krymsky district of the Krasnodar Territory. The company did not provide a comment.

According to its own data, Soyuz-Vino sells more than 40 million liters of Green Valley, Confessa, Traditional, La Petite Perle and other wines a year. La Petite Perle sparkling wines are also available in aluminum cans. Includes 1.2 thousand hectares of land, of which 200 hectares are occupied by vineyards. In 2021, Soyuz-Vin’s revenue grew by 21.15%, to 3.69 billion rubles, net profit decreased 4.7 times, to 48.8 million rubles. The main owner is Vladislav Vtulkin, follows from the Unified State Register of Legal Entities.

Soyuz-Vin’s interest in the cider market may be due to the limited supply of grapes for wine, which is primarily faced by large enterprises operating in the mass segment, the source of Kommersant in the industry believes. Since June 2020, the use of imported wine material has been prohibited for Russian wine. Given the adverse weather conditions in 2020-2021 and growing demand, grape prices have risen markedly. Among the major wine producers, the Abrau-Durso Group of Companies of the Boris Titov family already produces its cider. Sales of the drink quadrupled in 2021. In Abrau-Durso, they did not answer Kommersant’s questions.

According to NielsenIQ, in January-September 2022, cider sales grew by 10.8% year-on-year in physical terms and by 21.9% in money terms. Marketing director of AB InBev Efes (produces Bon Season cider) Maria Dementieva attributed the category growth in volume to the emergence of new brands, including Bon Season, which took second place in sales in eight months, as well as consumers’ search for new taste experiences. For example, MPBK Ochakovo launched its Will’s cider this year (Ochakovsky kvass, Khalzan beer, etc.). Interest in the production of cider from their own apples was also among the structures of LUKOIL shareholders.

Alexander Kazakov, chairman of the National Association of Traditional Cider Producers, says that demand for cider is growing amid consumer interest in a fruit drink that can be seen as an alternative to wine, as well as a reduction in high-end beer imports. In his opinion, Soyuz-Vino will be engaged in the production of cider in the mass segment from concentrate. Aleksey Nebolsin, a member of the Opora Rossii presidium, says that in Russia cider consumption is still at the level of 0.7 liters per person per year, which is almost 2.5 times lower than the European figure. But a drink with a standard taste from a concentrate runs the risk of getting lost on the shelf among numerous analogues, he believes.

Nikolai Zhelagin, founder of the Beru Vykhodny chain of beer stores, adds that cider is a rather narrow market that can be comfortable for small producers, but tight for large enterprises. In addition, he adds, cider imports have not declined as much as beer, so there is less potential to replace foreign brands. Maria Dementieva says that the category has great potential and AB InBev Efes will soon launch pear cider under its own brand. But, she adds, the purchasing power of the population and the cost of food are declining, so the development of the market will be more dependent on macroeconomic factors.

Anatoly Kostyrev