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Russia prepares to become a leader in vodka exports

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Russia prepares to become a leader in vodka exports

Russia may become the world's main exporter of vodka.

For example, last year the country increased its supplies of this type of alcohol by 8%, to $162 million, compared to 2018 figures. Vodka trade outside the country increased by almost 30% in volume and by more than a third (36%) in monetary terms compared to figures in 2015.

In the first six months of this year, trade abroad in physical terms increased by almost 3% to the same figure in 2019, amounting to almost 880 thousand dal in terms of 100% alcohol. However, at the same time, there was a 3% decline in value terms, down to $61 million. According to Igor Kosarev, president of the Union of Alcohol Producers (SPAP), such an impact on sales was caused by the pandemic.

Thus, according to him, although the network retail during the quarantine continued to operate steadily, but other channels have been blocked in one way or another, such as bars, restaurants and clubs were closed for several months. At the same time after the opening the rate of return to the levels of attendance, which were before the pandemic, is not high. This, as Kosarev specifies, is due to the norms on the observance of the distance for visitors.

In addition, a record fall showed another channel - GTR (global travel retail/duty free). As the President of the Union noted, one should not expect any sales in such limitation of air travel between countries, which occurred during the pandemic.

However, despite this, exports will begin to recover, and the growth rate will be directly proportional to the dynamics of the removal of quarantine restrictions, he stressed.

According to SPAP, the sales of vodka from Russia to other countries may increase threefold, up to $500 million, as compared to the last year. According to Kosarev, the domestic companies producing alcohol have all chances to take leading positions on the international markets in the future.

It should be reminded that from the beginning of the current year amendments in the framework of which manufacturers of excisable alcoholic beverages had an opportunity to subsidize interest rates on credits, which were granted to them for development of the export alcohol production.

According to the Union, the tools of state support that are available in other industries of the agroindustrial sector such as soft loans, transport subsidies, marketing support and assistance in protection of intellectual property should be extended to alcohol to promote export.

Made in Russia // Made in Russia

Author: Ksenia Gustova

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