The fall of the pound would allow importers to reduce the price of whiskey

The UK is a leader in the import to Russia of whiskey and gin, taking in the 77,5% and 58.9% of the import market, respectively, told RBC Director of the Center of researches Federal and regional alcohol markets (tsifrra) Vadim Drobiz. From January to may 2016 from the United Kingdom, the country imported 6.2 million liters of whiskey and 212 thousand litres of gin, he said.

The share of British goods to be significant in category “alcoholic beverages stronger than 25 degrees” — 27.4 percent (620 thousand l). Among imported to Russia of British beer is only 6.5% (2.32 million liters).

After summarizing the results of voting for Brexit, the pound weakened and the dollar and Euro by 8% and 6.3%, respectively, according to Bloomberg 20 hours GMT. In the long term it can affect the cost of British goods, in particular alcohol, do not exclude respondents RBC suppliers. “The fall in the exchange rate can affect prices. Everything will depend on its depth,” — says the General Director of SVAM Group, a major importer of beer and soft drinks (in particular, supplies of British beer brands 1698, Bishops Finger and Iron Maiden Trooper Ale) Igor Khavskaya.

“The supply of whiskey [in Russia], the foundations of the alcohol market of import categories last year fell, according to custom, by 25% due to the devaluation of the ruble. So now some devaluation of the pound against major currencies will enable manufacturers and importers to maneuver and recover the sale,” — said the Chairman of the company “the synergy” Alexander Mechetin. The portfolio of his company is, in particular, such whisky brands like Glenfiddich, Grants and Tullamore Dew and Hendrick’s gin.

Drobiz believes that the importing companies can benefit from the pound’s weakness, but is unlikely to change retail prices, even if the pound falls to 15%. “The British are buying alcohol by people with a certain income level is upper middle class and above. The price for such consumers is not a key factor in your purchase”, — says Drobiz. By estimations of importers, on the adjustment of retail prices, you can say, if the pound is devalued by more than 10% and continue to decline.