Fanagoria, one of Russia’s largest and most dynamic wineries, has announced a new stage of expansion in its sparkling wine production.
Located in the Krasnodar Krai region, the company is completing the installation of eight new Russian-made tanks, each with a capacity of 5,000 dal—equivalent to about 67,000 bottles. This investment, valued at more than 150 million rubles (EUR 1.6 million) , underscores Fanagoria’s long-term strategy to strengthen its position in the domestic sparkling wine market.
Scaling Up Capacity
The modernization project, scheduled for completion by the end of August, will allow Fanagoria to double its annual sparkling wine output from 5 million to 10 million bottles. In addition to increasing capacity, the expansion includes the construction of a new maintenance and communications site to improve the reliability and continuity of the production process.
This significant scale-up comes on the heels of a robust 2024, when Fanagoria increased its total output by 33% to over 2.75 million dal. Within that growth, sparkling wines surged by 50%, still wines by 33%, and spirits by 5%.
Vineyard Expansion and Focus on Sparkling Wine Varieties
To support this trajectory, Fanagoria is continuing to expand its vineyard holdings. In 2025, the company plans to plant 166 hectares, slightly less than the 200 hectares planted in 2024, with a focus on white grape varieties suited for sparkling wine production. As Deputy General Director for Marketing Anastasia Shamritskaya explained, the company expects to increase output by around 8 million bottles in physical terms, aligning vineyard growth with the needs of its expanding sparkling wine portfolio.
Innovation in Packaging and Market Trends
Fanagoria has also been experimenting with innovative formats, launching at the end of 2024 a special line of sparkling wines in aluminum cans, a project that required an additional 140 million ruble investment. This move reflects both changing consumer preferences and the company’s willingness to diversify its offering to reach younger and more casual wine drinkers.
Market Context
According to Rosalkogoltobakkontrol, sales of sparkling wines in Russia rose by 8.6% in 2024, highlighting strong consumer demand. However, the first seven months of 2025 have been more challenging, with sales declining by 3%. Even so, this contraction remains relatively modest compared to the broader alcoholic beverages market, which saw a sharp 12.1% decline over the same period (excluding beer, cider, and mead).
Outlook
Fanagoria’s latest investment illustrates the company’s confidence in the long-term growth potential of sparkling wines in Russia, despite recent short-term slowdowns in consumption. By expanding capacity, diversifying vineyard plantings, and exploring new product formats, Fanagoria is positioning itself not only as a leader in traditional still wines but also as a key driver of innovation in Russia’s sparkling wine sector.
Source: AgroInvestor