Russia Retail Wine Shelf Bottles

Sales of Liqueurs and Sparkling Wines Increase in Russia

According to a report by Kommersant, the production of liqueur wines in Russia saw a remarkable increase of 73.3% in the period from January to June 2024.

This surge is part of a broader trend in the Russian alcoholic beverage industry, which has experienced significant growth across several categories in the first half of the year.

Growth in Grape Wine Production

The volume of wine production from grapes in Russia reached 15.7 million decaliters (dal) in the first half of 2024, marking a 12.6% increase from the 13.9 million dal produced in the same period in 2023. This growth indicates a strong performance in the domestic wine industry, driven by both increased demand and possibly favorable climatic conditions for grape cultivation.

Sparkling Wines on the Rise

Sparkling wine production also saw a notable increase. In the first six months of 2024, the production volume rose by 28.9%, from 4.7 million dal in 2023 to 6 million dal. This surge can be attributed to the growing popularity of sparkling wines among Russian consumers and the expansion of domestic production capacities.

Decline in Fruit Alcoholic Beverages

In contrast to the growth in grape and sparkling wines, the production of fruit alcoholic beverages experienced a significant decline. Production fell by 20.3% in the first half of 2024, dropping to 1 million dal. Despite this decrease, the category of "fruit alcoholic products" saw a slight increase in production volume, reaching 4 million dal. This nuanced performance suggests that while some types of fruit-based beverages are declining, others are gaining traction.

Increase in High-Alcohol Beverages

The production of alcoholic beverages with an alcohol content of over 9% increased by 10.5% in January-June 2024, amounting to 51.7 million dal compared to 46.7 million dal in the first half of 2023. This category includes a variety of spirits and strong alcoholic drinks, which continue to maintain strong demand in the Russian market.

Brandy and Vodka Production

Brandy production experienced a 13.3% increase, rising from 3.6 million dal to 4.1 million dal. Similarly, vodka production grew by 5.9%, from 33.2 million dal to 35.2 million dal. These traditional strong alcoholic beverages remain staples in Russian consumption patterns, contributing significantly to the overall growth in the alcoholic beverage sector.

Liquor and Vodka Products Lead the Growth

Among strong alcoholic beverages, liquor and vodka products showed the greatest growth. Their production volume increased by 30.1% in the first half of 2024, from 6.2 million dal to 8 million dal compared to the same period last year. This substantial growth reflects both increased domestic consumption and possibly an expansion in export markets.

Overall Alcoholic Beverage Production

Excluding beer, beer drinks, cider, and mead, the total volume of alcoholic beverage production in Russia for the first half of 2024 increased by 9.2%, reaching more than 88 million dal compared to 80.6 million dal in the same period in 2023. This broad growth across various categories highlights the robustness of the Russian alcoholic beverage industry, despite economic challenges and shifts in consumer preferences.

Source: Kommersant

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