Rustam Tariko will be brazing Russians brandy

The scandalous businessman is trying to get into the second largest segment of the Russian alcohol market after vodka.
Rustam Tariko, Russia's largest producer of vodka, Roust (Russian Standard, Green Mark), will expand its own strong alcohol portfolio next year to include the brandy brand - the company will have the Dubrovsky brand in it. In strong drinks, the segment of Russian brandy is second in volume after vodka: in 2017 it increased by 11.5%, but this year it almost did not grow.

About the intention of the Roust to go into the category of Russian cognac “Kommersant” said a company representative. According to him, the concept of a product under the Dubrovsky brand has already been developed. According to Rospatent, a trademark with this name was registered as early as December 2011, but was not previously used. It became the property of Roust after in 2013 the holding acquired the Polish Central European Distribution Corporation together with factories in Russia and Poland and trademarks - vodka "Green Mark", "Parliament", "Talka", etc.

As specified in the Roust, blend for brandy will occur using French distillates. The company did not say exactly where Dubrovsky will be produced. A source familiar with her plans says that negotiations were underway on contracting the product with the Vilash-KSHV plant in the Leningrad Region, which is part of the Vilash Group of Companies. The marketing department of the Vilash Group of Companies did not confirm this information.

In retail "Dubrovsky" should appear in the first quarter of 2019, said in the Roust. The brand will be presented in bottles of 0.5 liters and 0.25 liters. The price "on the shelf" in the company did not name.

A source close to the company knows that the product will be represented in the mainstream segment. In the Siberian Alcohol Group (ASG), this segment is determined at 450–650 rubles. per bottle of 0.5 liters. “It accounts for about half of all sales of Russian brandy in absolute terms,” said the press service of the group. They added that the main brands with a high level of customer loyalty are just in the mainstream segment.

The main beneficiary of Roust is Rustam Tariko. In Russia, the holding owns four plants for the production of vodka, as well as an enterprise for the production of low-alcohol cocktails. In the first half of 2018, Roust became the first among vodka producers in Russia with a volume of 4.38 million dal. The holding also sells agency brands: Remy Martin cognacs and Metaxa brandy, liqueurs and Cointreau, Sierra tequila, etc. are in its portfolio.

The main competitors of Roust in Russia among vodka companies have already included their own brandy brands in the range. Thus, Beluga Group’s portfolio (Beluga vodka, “Belenkaya”) includes Georgiyevsky, Golden Reserve, Bastion cognacs, etc. - its launch took place in 2014. The Beluga Group report for 2017 states that its volume growth in the “Russian cognac” category in this period was 34%. The company indicated this circumstance as one of the reasons for the increase in its total sales last year by 6% (up to 61 billion rubles).

Director of TSIFRRA Vadim Drobiz, referring to the data of the Unified State Automated Information System, says that in 2017 the production of Russian brandy increased by 11.5% to 8.5 million dal. “This surge was caused by increased demand, which, in turn, was due to the fact that consumers materially began to feel more confident from the beginning of the economic crisis,” the expert believes. But this year, he continues, the growth of brandy production slowed down: in January-October, the volume increased by 1.1% over the same period last year, to 6.7 million dal.