In the first three quarters of 2024, sales of sparkling wine in Russia have seen a remarkable upswing, growing by 27% in volume over the same period last year.
According to a study by X5 Club, part of the country's major retail giant X5 Group, cities like Volgograd (40%), Kazan (34%), and Voronezh (31%) saw the highest increase in demand. These numbers not only reflect strong domestic interest but also surpass the figures reported by Rosalkotabakkontrol, Russia’s federal regulator, which pegged sparkling wine sales at 14.9 million decaliters, up 11.1% year-on-year.
Economic and Regional Dynamics
Analysts attribute the surge to strategic expansion and customer outreach efforts by X5 Group. The company’s Vice President of the Russian Association of Retail Market Experts, Alexander Stavtsev, highlighted that X5’s expansion, particularly in the Far East with 1,000 new Pyaterochka stores, has made sparkling wine more accessible, contributing significantly to these growth rates.
Moscow remains the primary market for premium wines priced above 3,000 rubles, which make up 1% of the city’s sales. Year-to-date sales of these wines rose by 29%, emphasizing the city’s demand for luxury options. In contrast, Chelyabinsk leads budget sparkling wine sales, with 52% of residents favoring bottles priced below 1,000 rubles. This preference aligns with a broader trend across Russian cities, where budget-friendly sparkling wines are chosen in 47% of cases, a 5-point increase from 2023.
Price and Import Influences
The industry has been affected by three fiscal changes in 2024, including raised duties on wines from "unfriendly" countries and increased excise taxes. These regulatory shifts have led to a more substantial demand for domestic sparkling wine, particularly in regions outside Moscow. For example, Moscow’s imported wine sector remains significant but is shrinking in other areas where domestic products are replacing imports. The price of an average prosecco bottle in Moscow, which was 499 rubles in 2022, has now soared to 1,500 rubles, pushing many wines from the mid-tier to premium categories.
X5 Group’s premium offerings, available at Perekrestok supermarkets in Moscow, include a diverse selection of sparkling wines. However, stores like Pyaterochka, which are more prevalent outside the capital, typically stock more affordable wines, impacting premium wine availability in other regions.
Changing Consumer Preferences
The shift toward lighter, more vibrant cuisine appears to be influencing Russian consumers' tastes in sparkling wine, with brut and semi-sweet varieties leading in popularity at 43% and 42% of sales, respectively. Brut wines, aligning with a global trend toward drier wines, are becoming more popular, while semi-sweet options, a nod to Soviet-era preferences, retain a strong foothold in cities like Chelyabinsk (57%) and Ufa (54%).
The preference for Russian sparkling wines is also evident, as domestic brands accounted for 84% of sales in the first nine months of 2024, marking a 7% increase from last year. Italian sparkling wines follow at 13%, with other international options, including French champagne, making up the remaining 3%. White sparkling wines dominate the market, representing 84% of sales, while pink and red sparkling wines remain less popular.
Youth and Social Appeal
The role of sparkling wine as a social beverage resonates with younger consumers in Russia. According to wine promoter Vlada Lesnichenko, sparkling wine has become a popular entry point into the wine world for young Russians, who are often drawn to its festive, low-alcohol nature. "Sparkling wine is noisy, bright, and very social. It fits well with the Instagram culture, where opening a bottle with a sabrage, for instance, adds excitement and suits reels," Lesnichenko said. This trend aligns with a broader shift towards lower-alcohol options among younger, health-conscious Russians.
Source: RBC Vino