Vodka returned to growth: who benefited from the recovery of the vodka market.

The production of distilled spirits at the Kazan distillery

Vodka stands up from his knees

As follows from the data of Rosstat, production of vodka that fell in Russia last three years, began to recover. In the first half of 2016, Russian plants produced in aggregate, 291 million liters of vodka, which is 9.5% more than in the same period of 2015. The amount of strong liqueurs has increased even more — by 38%, to 23 million L.

The largest manufacturer of spirits in the country in the reporting period was “Tatspirtprom”, owned by the Tatarstan government, the company produced 52.7 million liters of vodka and LIKERO-vodka products, surpassing the first half of 2015 by 61.5%. Production company “synergy” in the lead up to the first half of last year, has grown not so considerably — by 34.22%, which left her in second place with 45.6 million L.

In a press-service of “Tatspirtprom” tied the explosive growth of production, the company focused on foreign expansion. In 2016, the company from Kazan has shipped the first outside the Republic more products than sold in Tatarstan. According to “Tatspirtprom”, sales growth in the regions of Russia grew by 2.5 times, exports — three times.

Competitors of Tatspirtprom” among the largest producers of vodka say that the success of state-owned companies provided the monopolization of the domestic market of the Republic and grants from the government. “On the Tatarstan market is still extremely difficult to enter — has complained in conversation with RBC senior Executive of a major alcohol manufacturer. — Besides, I know, they compensate part of the paid excise from the budget, which reduces the cost. The words of the interlocutor of RBC indirectly confirmed by the data retail monitor Nielsen is in top 10 best selling vodkas in Kazan there is not one, not made “by Tatspirtprom”.

“Sales growth contributed to the state’s efforts to curb the activities of illegal manufacturers of alcohol, — the revocation of licenses, seizure and destruction of equipment, the introduction of yegais in the wholesale-retail link”, — told RBC Chairman of the Board “Synergies” Alexander Mechetin, commenting on the positive half-year results.

The main loser of the first half of the top companies became Alcoholic Siberian group (a brand “Five lakes”, “Husky” and others). The production capacity of the company from Omsk decreased by 15.5% to 14.9 million L. According to the CEO of ASG by Igor Savelyev, a dip in production volumes was associated with the renegotiation and negotiation of new contracts with retailers. “Now, agreeing mutually beneficial terms of working with our key partners in retail we expect to see double-digit output growth in the second half,” explained RBC Savelyev

New leaders

For the first time one of the largest producers of spirits in Russia, companies are among the Global Spirits and United beverage factories in Penza (OPVS).

The rise of immigrants from Ukrainian companies Global Spirits (known in the market due to the brand “Khortytsya”) occurred after the expansion of production capacity. Until 2016 the Ukrainian company was the only plant in Russia — “Russian North” in Vologda. At the end of December it became known that Cyprus offshore Oxford AMG-77 Ltd, which belongs to the “Russian North”, became the owner of 100% of OOO Rodnik and K”, which owns the eponymous factory in Mytischi capacity of over 20 million liters of vodka per year. Owner of Global Spirits in an interview with Ukrainian media denied the information about the transaction. Experts have estimated the enterprise value of 300-500 million rubles.

Global Spirits came in fourth place in the list of largest manufacturers of spirits, with annual production capacity of 19.4 million litres per semester, which is more than twice (+119%) higher than a year ago.

Even more impressive growth demonstrated by the company “United Penza vodka factories” (OPVS), never were part of the ten largest producers in the country. For six months two plants included in OPVS, together produced 12.4 million litres of spirits — 6.6 times more than in the first half of 2015. The secret modest Penza manufacturer — in contract for the bottling of products for the distribution company “Status group” — the largest seller of vodka in 2015 with a share of 18.4% in volume and 15.1% in monetary terms.

“Status Groups,” which on the market associated with the structures of the head of the development company Coalco Vasily Anisimov, was able to provide for retail the lowest price. Brands from the portfolio of” — “Good bear”, “Kalina Krasnaya”, “Staraya Marka”, “Pyatnitsa” and others — were on the shelves at the minimum allowed state price — 185 rubles per 0.5 liters of The cheapest vodka competitors sold at least 50 rubles. more expensive.

However, at the end of 2015, the Investigative Committee of the Kabardino-Balkar Republic, with the support of the FSB and the Federal tax service has revealed a scheme to avoid payment of excise tax on vodka in 11 distilleries in the CBD, where the spread on the contract vodka for “Status Groups”. Factories were closed, and “Status Groups”, which did not question, he began searching for a new site for bottling.

As can be seen from the Rospatent, the right to use trademarks in the portfolio of “Status Group” in late 2015 or early 2016 got two plants in North Ossetia and OPVS.

The General Director of “Status Groups” Sergey Popov told RBC that due to the change Butlerov the company’s sales dropped dramatically in the first quarter, but began to recover in the second. “In real terms, our sales fell by 10% in the half, but we got a small increase in cash terms over the same period”, — said Popov. According to him, the company, received with the help of cheap vodka the largest market share, has now started to increase the profitability of your business.