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Russia’s Wine Market

According to one of the foreign marketing agencies, at the moment no less than 9000 brands of wine exist in the global market. New suppliers of wines from Argentina, Australia, USA, Chile, Uruguay and South Africa are trying to establish their names in the regions which for many years were under the influence of their counterparts from Italy, Spain and France. How the Russian businessmen who have entered the wine business rather recently are to operate in such a difficult situation? What wine should they choose for promoting on the domestic consumer market?

A number of experts believe the elite drinks sector to remain the main bastion of the European wine makers. And probably in many respects it is true. In Europe, wine is traditionally made in small by world standards quantities, and technology of its production has not changed for centuries, which undoubtedly represents a competitive advantage. Especially for the conservative, the most stable in size and solvency part of its consumers.

However, unlike Europe, the New World countries as a rule have the big areas of vineyards which belong not to separate small wine makers or small co-operative societies but to the large specialized companies. The basic advantage of the New World winemakers is the organization of winemaking process and the price policy directed at a mass segment of consumers looking for an inexpensive but quality product.

The difference in the wineries size affects their preferences in marketing strategy: it is much easier to organize the advertising campaign for the company with a turnover of millions of dollars than for a small family firm. At the same time until recently the European manufacturers felt confidently in the international wine market. Including Russian. The main trumps that allowed them to dominate over all the other wine countries is a centuries-old culture of European winemaking, the established wine brands with a long-term history and high quality combined with unique organoleptic properties of wine.

Part of the marketing policy of the new wine market players from Australia, Argentina, Chile and South Africa is their willingness to experiment with grape varieties, its cultivation, production technology, blending. And those who promote such product on the Russian market must bear it in mind.

It should be noted that the audience of wine consumers in modern Russia is at present still in its formative stage. Our country is an example of the developing consumer market. Many high-quality wines imported from abroad simply were not known to Russians previously. The potential of their consumption is rather promising. In 1980 the average Russian consumed 21 litre of wine per year. In 2009, wine consumption in Russia per capita fell to the level of 7 liters. It means that in order to get closer to the level of sales in 1980, the supply of these products should be increased by 300%. What wine it will be, from which countries and at what retail price it will appear on the market depends largely on the drinks industry professionals.

Wine market players will have an opportunity to discuss this issue within the frames of business program of the International Exhibition "Drinks Industry / Russian Wine Fair", organized by Asti Group in Moscow at Crocus Expo from 18th to 20th of November 2010.



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