subject: The Russian Market Of Sparkling Wines - July 2012 (russian Market Report) [print this page] The volume of supply of sparkling wines in 2011 on the Russian market was valued at ~25,600 thousand USD, which was with 2 % higher than the results in 2010. There was a decrease in the consumption of sparkling wines in 2008 2009. However, in 2010, there was an increase of 19 % which completely compensated the falling and was actually higher, compared to the pre-crisis levels.
The upward trend in the production of sparkling wines (including sparkling and carbonated wines) in 2005 - 2007 (with growth rate of 111% in 2006 and 141% - in 2007) was replaced by a slight decline in 2008 and 2009. The decline was 4% and 7%, respectively. However, in 2010 there was a growth of 15%, which even exceeded the peak pre-crisis level of production (despite the suspension of the largest producer JSC "Istok". In 2011 were produced almost as many sparkling wines as in 2010 (the decrease was valued at only 322,000 USD).
The highest volume of sparkling wines was produced in the South Federal District (about 43 - 45% of the total). The largest production facilities are located in the Krasnodar Region, the Rostov Region, the Dagestan Republic, and also the Kabardino-Balkarian Republic. The second place in terms of production is taken by the Northwest Federal District with a share of 27 - 30% of the total. In it, the main manufacturing enterprises are located in St. Petersburg.
About 17% of the total production of sparkling wines in Russia for 2011 was made in the Central Federal District (mainly in Moscow). It should be noted that the share of this particular District in the recent years considerably decreased, while at the same time the share of the South Western Federal District share increased.
The highest volume of production of sparkling wines in Russia happens in the second half of the year after the yield of grapes is gathered and the sparkling wine is imported to Russia. The peak consumption of sparkling wines also falls in the end of the year which is also connected with the tradition to celebrate New Year with sparkling wine.
In Russia there are over two hundred officially operating companies producing wine products. Many companies operate mainly in their own and neighboring regions and some products are popular all over Russia. The number of producers of sparkling wines in Russia is smaller, and the bulk of production comes from two or three dozen companies.
Among the largest producers of sparkling wines in Russia , the leading are CJSC "Sparkling wines" (17.7%), OJSC "DZIV" (11.1%), OJSC "MKSHV" (7.5%), JSC "Vilash" (6.6%), JSC "Cornet" (6.6%). The largest producer of sparkling wines and the leader since 2007, OJSC "Istok" has stopped its production in 2009 because of financial difficulties that have arisen during the peak of the economic crisis.
The volume of imports of sparkling wines in Russia in recent years steadily increased, so that from 2001 to 2011, deliveries increased by 5.8 times. In some years, the growth rate reached 140 - 170%. However, decreases were observed in 2006 (39%), and in 2009 (6%). If in 2001 - 2002 imports amounted to ~ 600,000 USD, then in 2011 it will be increased to 3.6 million USD.
The largest supplier of imported sparkling wines in Russia for the past few years is Italy, however till 2005 Moldovan sparkling wines were leading in imports. Also, at present, large amounts of sparkling wines come from France, Ukraine, Germany, and Spain.
The volume of imports of sparkling wines in value terms was ~ 3,615 thousand USD, which is about 14% of the total wine market. In the recent years, the volume of imports increased in both absolute and relative terms - the share of imports on the market increased. Nevertheless, imported products are dominating in both low and middle price segments. However, positions of Russian producers can undermine such factors as the entry of Russia into the World Trade Organization, under which the rate of duty on sparkling wine will be 12.5% in 2015, when at the moment it is 20%. The volume of exports in 2011 was ~ 38,400 USD. The export is insignificant and has not exceeded 70 thousand USD in value over the last decade.
The consumption of sparkling wines in Russia is directly dependent on welfare, culture, consumption of alcoholic beverages, state policy in the field of alcohol, etc. In the recent years, consumption of sparkling wines increased. During the crisis years, the estimated consumption has declined slightly, but in 2010, the market volume surpassed the pre-crisis levels. At the moment, the consumption of sparkling wines per capita is 1.8 liters. Experts estimated that by 2013, consumption should exceed 2 liters per person, and after 2017 - 2.5 liters per person.
