The largest manufacturers of champagne and cognac in Russia join

The largest Russian manufacturers of champagne and of brandy — “Abrau-Durso” Boris Titov family and “Alliance 1892” Michael Movshovich and Alexander Nikolaev agreed to join the distribution. The parties will create a joint-stock company “Trading house “2A,” which will receive 50%. The proceeds of a new player in the market will reach 20 billion rubles per year, which is comparable to the largest producers of vodka, I expect partners.

About creating a new super-player in the Russian alcohol market, said executives of the President of the Russian wine house “Abrau-Durso” Pavel Titov, Chairman of the Board of Directors of the Wine and Brandy house “Alliance 1892” Alexander Nikolaev.

According to them, the combined company, called “Trading house “2A” is now undergoing the registration procedure and will start to work since the beginning of September 2016. The company has already started signing contracts with key partners — retail chains and major wholesalers — will now be a single contract with a consolidated portfolio of brands.

Thanks to the merger, “Trading house “2A” will be able to offer our partners a large and diversified range of products, including major bestsellers — sparkling “Abrau-Dyurso”, brandy “Old Kennigsberg” and “Trophy” wine “Usadba Divnomorskoe”, “Vedernikov Winery” whiskey 7 Years, Terrrier Scotch and other drinks.

“In the current market conditions, the intensive development for any company is impossible without the diversification and consolidation of businesses. Association distribution structure with the Russian wine house “Abrau-Durso” gives us the opportunity to step into a whole new stage in our development”, — quotes the words of Alexander Nikolaev in a press release issued on this occasion.

The businesses of the merging companies comparable in scale. The revenue of “Abrau-Durso” in 2015 to 7.25 billion rubles, “the Alliance-1892” – 9,667 billion. Merging portfolios and the geographical distribution will allow in 2017 to achieve the target revenue of 20 billion roubles, is underlined in the presentation of the combined company. For comparison — the largest revenue in 2015, the Russian manufacturer of vodka of “synergy” was 30.7 billion rubles. While sparkling wine and brandy are more marginal categories, than vodka.

As follows from the data of Rosstat, both companies are leaders in their categories. In the first half of 2016, “the Alliance-1892″ produced 4.5 million liters of brandy — the closest pursuer — Zavod UralALKO” (owned by “Synergy” — 3.6 million liters).

“Abrau-Durso” in the first half of 2016, with 5.6 million L. produced goods became the third in terms of production of sparkling wines (after the plant “Sparkling wine” (St.-Petersburg) and “Derbent factory of sparkling wines” (Dagestan ), but due to a more expensive than the competitors products is the market leader in sparkling wines in terms of money.

“Our strategic partnership with the Wine and brandy factory “Alliance 1892” is a business diversification, and getting started with a new high-margin categories, said about the merger of distribution structures Pavel Titov. — Our approach to doing business and corporate culture are largely the same. In addition, the main business indicators approximately identical, therefore, we believe the Association with Wine and brandy factory “Alliance 1892” successful and unprecedented for the Russian market, a step which would reduce risks and increase profitability for both parties.