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Friday, October 28, 2016

Wine in Russia will sharply rise in price

Importers are prepared to increase wine prices in the quarter. In parallel, the head of the Ministry Alexander Tkachev, calling it unacceptable that Russian plants are “plants for the bottling of wine, proposed to restrict the importation of foreign wine in support of the Russian viticulture. In this case, experts warn, wine, and all can become deficient.

The Minister of agriculture of Russia Alexander Tkachev has proposed to raise multiple duties, making unprofitable importation of wine materials in Russia.

“The task is correct, but it is unlikely we will be able to resolve sooner than in ten years. And that is assuming that we will plant vineyards, and we don’t do that”

“Our plants are, in General, plants for the bottling of wine. This is unacceptable. Today, when a farmer or a large cooperative begins to lay (the winery), and I recall that the payback period is 15 years, simply bring a tank or a ship from South Africa or another country, just 100 or 1000 tons. Pour the wine in the bottle, already here in Russia, but foreign wine. What kind of competition. Of course, the economy will be better in those who have used other wine materials, bottled and sells it under the brand Russian. This is unacceptable. Or should we raise customs duties, and multiply, and make unprofitable importation of wine materials to Russia, or even close to this source” – quoted by TASS Tkachev.

Also the head of the Ministry of agriculture has offered to subsidize the construction of wineries. According to him, the devaluation of the ruble led to the fact that high-quality Russian wine became more popular in the market, and subsidies only to restore the viticulture industry is not enough.

Some Russian wine-makers have opposed this initiative. So, the President of the Union of winegrowers and winemakers Leonid Popovich said that currently the Ministry of agriculture proposed a ban on the importation of foreign bulk wine cannot be sold.

“Our wine is imported, it is common practice. Here it is bottled, then called the Russian wine and sold well. This is about 1/3 of the total sales of wine. Now you can not deny, because then we will lose 1/3 of production. Grapes growing for five years. As will give fruition, we’ll replace it made of wine imported wine materials. In the future when it will be possible to ban” – quoted by Popovic, “Says Moscow”.

“Last year citizens of Russia had some wine, champagne, sparkling wines, wine beverages, brandy, about 1.6 billion litres. From his grapes produced 350 million litres. That is, we provide ourselves wine by about 25%. This is a technical grapes. There is another table grapes, which we eat in its pure form. This grape we have only 10% Russian and 90% imported,” – said in turn the Director of the center of researches Federal and regional alcohol markets Vadim Drobiz. “Imported wine in bottles and so dear, and cheaper it will be. From Monday importers increase by 15-25% the price of wine products”, – quotes “Russian news service”.

However, subsequently, Drobiz said that his words were misinterpreted by journalists, while the sharp increase in prices from importers is not yet a fact but a likely scenario.

The analyst stated that we are talking about a planned price increase, which is not incorporated the risks of loss of profits from the initiative of the Minister of agriculture to ban the import of wine materials. If this initiative is approved, the country does face a shortage of wine, I’m sure Drobiz.

At the same time, he noted that the work in the direction of import substitution is necessary. “The task is correct, but it is unlikely we will be able to resolve sooner than in ten years. And that is assuming that we will plant vineyards, but we do not. There is no money, no business, no state,” the expert continued.

In turn, the Russian sanitary service and inspection departments continue to find imported alcoholic products harmful substances and prohibit their importation to Russia. So, on August 17 the CPS has withdrawn from sale several lots of American wines, in which the lab found phthalates and pesticides. It was about the dry red wine “Gaiser Peak Merlot, white sweet wine Crane Lake Moscato white semi-dry wine Gnarly Head Chardonnay.

However, representatives of the Russian alcohol market argued that the share of American wines in Russia was extremely insignificant – less than one percent. And is it only scandalous reason was able to whet the interest of Russians to the wine from overseas.

In June in Russia were also rejected potentially dangerous “powdered alcohol”, which was planned to sell here American businessmen. Last year, the CPS found harmful substances in American whiskey Kentucky Gentleman, as well as in the whiskey Jack Daniel’s Tennessee Honey Liqueur.

But, of course, “suffered” from the Russian Rospotrebnadzor not only Americans. In early August of this year, the Federal service banned the delivery party is not the appropriate sanitary standards of the wine from Georgia, although the total embargo imposed on Georgian wines after the 2008 war, has long been removed. Prior to that, Rospotrebnadzor has suspended supplies of Moldovan wines, there were tensions with Russia and Kazakhstan.

By the way, in December last year, the CPS unveiled interesting statistic: of counterfeit goods in imported wine was three times more than in domestic – 6.1% and 2.1% respectively.

The head of the Center for national alcohol policy development, former head of National alcoholic Association Pavel Shapkin told the newspaper VIEW that most of the wines supplied to Russia, is of poor quality. “We cannot say that 100%, but on average I think the kind of wine that Europeans would not buy”, – he said.

Of course, the Russians have the Crimean wine. After the reunification of the Peninsula with Russia and the trend of import substitution, the share of Crimean wines in the Russian stores the expected increases. “Mostly, “Massandra”, “Inkerman”. There were certain measures to support wine producers from the Crimea, including the regional authorities, in favour of placement in the stores a larger number of such products. And it is, in principle, sufficiently promoted, in contrast to the us. What percentage of Crimean wine in the alcohol market of Russia, it is not known exactly, only estimated. According to them, it is about 7-8%,” said Shapkin.

According to him, Crimeans now given all opportunities to occupy significant market share, but they have another problem related to the adaptation to the requirements of the Russian legislation.

“That includes the purchase of meters, installation of the Unified state automated information system (USAIS), and other things that Crimean winemakers more recently, and in a nightmare could not have dreamed,” – says Pavel Shapkin.

The head of the Crimea Sergey Aksenov also announced the intention to revive the former glory of the wine on the Peninsula. In particular, he proposes to do this by conducting wine festivals, and increasing the investment attractiveness of the region.


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