Perekrestok flagship supermarket by Retail Branding GmbH, Moscow – Russia

Decline in European Union Wine Exports to Russia Signals Market Shifts

Wine supplies from the European Union (EU) to Russia witnessed a significant downturn, marking a nearly 40% decrease in the period from August 1, 2023, to January 31, 2024, compared to the same timeframe in the preceding year.

This revelation, reported by RBC citing data from the General Directorate of Agriculture and Rural Development of the European Commission, unveils intriguing dynamics reshaping the wine trade between these regions.

Over the course of six months, EU member states dispatched 1.19 million hectoliters (hl) of wine to Russia—a stark contrast to previous years and the lowest recorded volume in the past half-decade. While the leading countries in wine exports to Russia maintained their positions, virtually all experienced notable declines in shipment volumes.

Latvia, retaining its status as the largest supplier, saw a substantial reduction of 44.3% in wine imports to Russia, amounting to 368.3 thousand hl. Similarly, Lithuania witnessed a 32.3% decrease, with exports plummeting to 299.1 thousand hl. Italy, a key player in the wine trade, also registered a significant decline of 29.5%, supplying 295.5 thousand hl to the Russian market.

Contrary to the prevailing trend, Poland emerged as a notable exception, experiencing a noteworthy increase of 21.3% in wine exports to Russia. This surge, amounting to 75.3 thousand hectoliters of still and sparkling wines, was attributed to the concentration of parallel imports from various countries in Poland. Notably, products like Moët & Chandon wine were imported through this channel.

Additionally, countries such as the Czech Republic, the Netherlands, and Belgium demonstrated substantial growth in wine exports to Russia. The Czech Republic, for instance, witnessed a six-fold increase, reaching 968 hl, while the Netherlands and Belgium experienced growth rates of 4.2% and 933.3%, respectively.

Amidst these shifts, retail chains emerged as influential players in the wine import landscape of Russia. Notably, chain retailers secured top positions among the largest importers, with X5 Group, managing Pyaterochka and Perekrestok, leading the pack by importing 40 million liters of wine. Following closely is Magnit, with imports totaling 31 million liters.

This decline in EU wine exports to Russia signals a noteworthy shift in market dynamics, influenced by various factors including geopolitical tensions and changing consumer preferences. As stakeholders navigate these complexities, adaptability and strategic foresight will be essential in charting a resilient course forward in the evolving landscape of the wine trade.

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