It is becoming increasingly difficult for Russian winemakers to survive

Currently, more than half of the wine market in Russia falls on domestic products. Against the backdrop of geopolitical changes, it became clear how much this industry depends on various supplies from abroad. At the moment, the Russian wine market has developed in many respects a classic for most industries of our country. economics Recently, a situation where, on the one hand, there is an unprecedented sanctions pressure on domestic winemakers, and on the other hand, new prospects are opening up.

In 2022, at the First Russian Wine Forum, Deputy Prime Minister of the Russian Federation Victoria Abramchenko, who oversees the country's wine industry, said that, despite the sanctions, this segment manages to demonstrate steady growth. Thus, grape production in 2021 increased by more than 10% compared to last year (+752 tons). In 2023, an increase of 760 thousand tons is expected. In addition, the official noted that the geography of Russian viticulture and winemaking is also expanding at an active pace. For example, the first wines from Samara can already be tasted, and the first harvests of vineyards in the Voronezh and Saratov regions are expected in the near future.

In 2020, the law on viticulture and winemaking came into force in the Russian Federation. It was assumed that the new rules would create all the necessary conditions for the development of the industry. In addition, changes in legislation were supposed to ensure the production of high-quality domestic products from grapes and protect the country's population from low-quality wine. The bill also establishes rather stringent requirements that products designated as “wine of Russia” must be made exclusively from grapes that were grown on the territory of the Russian Federation. Financial, property and administrative support is provided for representatives of this industry.

The Ministry of Agriculture of the Russian Federation notes that the area of ​​vineyards in the country is also increasing every year. Do not forget that in 2014, such a trend was facilitated by the annexation of Crimea to the Russian Federation. According to the results of that year, the total area of ​​vineyards increased by 23,5 thousand hectares. In addition, it is necessary to pay attention to the fact that the volume of wine production is also gradually growing, which can be considered the result of state support for this industry.

Despite all the actions aimed at the development of winemaking and viticulture in Russia, at present, domestic products are seriously losing in such a moment as the strength of the brand. So, if we consider the structure of world wine imports, here the Russian Federation ranks 9th with a share of 3,9%, and in the case of our products entering the world markets, the indicators of the Russian Federation are much more modest (0,03% of world exports and only 56th position in the ranking). From this we can conclude that Russian wine is noticeably losing in this regard, the average buyer does not trust domestic products, preferring more well-known and popular brands from countries that are historical leaders in the production of wine drinks. In addition, the sanctions policy against Russia by unfriendly states. Winemakers of our country are actively looking for new markets to sell their products. China, Japan and Hong Kong may be of particular interest in this matter. In addition, among the new directions of sales, one can consider the states of the African continent, where the demand for alcoholic products is constantly increasing due to the rapid growth of the population.

Due to the sanctions, Russian wine producers experienced certain difficulties with the components and equipment that are necessary to create the final, and most importantly, presentable products. Thus, material for wine corks was mainly imported from France, Spain and Italy. Labels, paints, equipment for creating wire for sparkling wine - most of the processes involved foreign resources and Technology. The reconfiguration of supply chains led to a rise in the cost of products, which also had a negative impact on demand indicators.

The key problems of domestic winemaking at the moment lie in the economic, technological and mental planes. For example, a significant increase in the excise tax in recent years contributes to the stagnation of production capacities and the growth of bankruptcies among small enterprises. The imperfection of the technological base seriously affects the quality of the finished product, which rather quickly affects the mood of a potential consumer, as a result of which buyers prefer foreign wines. It is also worth paying attention to the very low culture of drinking wine drinks in our country, quite often the inhabitants of Russia choose other types of alcoholic products, guided by a more affordable price and greater strength.

Summing up, I would like to emphasize that at the present stage viticulture and winemaking in the Russian Federation has significant problems in the international market, which are caused by the low competitiveness of domestic products and geopolitical conditions, which are the economic isolation of Russia. A similar situation can be seen in the domestic market, where there are problems associated with outdated equipment, a lack of specialists with high professional skills and a relatively decent age for many vineyards. An integrated approach to solving existing problems will improve the situation in the country's vineyard and wine complex and will contribute to the development of agriculture in general and specific regions specializing in wine production.

At present, this sector cannot develop independently without the support of the state, which is not quite typical for a market economy. Only with the development of loyal measures to regulate the regulatory environment that can simultaneously satisfy the desires of both the country's authorities and market representatives, this complex will be able to develop sustainably.
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 23 May 2023 12: 22
    Poor quality of both domestic wine and beer. Different batches of the same wine are very different.
    They save on everything apparently and raise prices, because. The price in different stores is also very different.
    1. isofat Offline isofat
      isofat (isofat) 23 May 2023 12: 36
      Serge, in our Russian market there are wines for different categories of consumers. If you buy chatter and want to buy quality for this money, like elite wines, then you are an eccentric, naive. yes
    2. Nelton Offline Nelton
      Nelton (Oleg) 24 May 2023 15: 27
      Quote: Sergey Latyshev
      Poor quality like domestic wine

      Yes, and imported - the same is often unclear what we are being transported.
      Georgian drinks (sold in the Russian Federation) are not wine at all, paint-sugar-alcohol, but they take them ...
      Despite the fact that Saperavi is from Georgia, a good variety. Russian Phanagoria may not make the best out of it - but still wine.
  2. Raymond Offline Raymond
    Raymond (Raymond) 23 May 2023 20: 36
    By changing the rules, you created "Russian champagne" ... to protect against bad "champagne" ...
    and now you discover it doesn't sell "Russian champagne"?
    Italians make champagne without changing the rules...
    The wine is called "prosecco" and it is real Italian wine.
    They didn't say it was an Italian champagne made to fight bad champagne...

    Make good wine and be yourself, offer good Russian wine... The quality of work pays off in the end.
    1. Sergei Fonov Offline Sergei Fonov
      Sergei Fonov (sergey fonov) 27 May 2023 22: 49
      In 2000, they took a good red semi-dry in Germany, in my opinion Albanian cost 1,5 marks, in Russia it cost many times more, what does the price depend on now? I think there are many factors, including corruption, the greed of the manufacturer, the lack of real competition and state control over sellers.
      1. Raymond Offline Raymond
        Raymond (Raymond) 28 May 2023 09: 00
        This is not the greed of the owner-manipulator. His business is not charitable, he works to make money, not to please others. What you call "greed" is the lack of competition in a market where there is competition and where prices are free. Thus, in essence, due to the lack of competition, prices do not reflect market reality. As for corruption, I believe that this is an unbridled evil for all sections of the Russian economy, and this applies not only to wine. As for state control over sellers, it is necessary, firstly, quality control, and secondly, tax control (which just reveals whether it is corrupt or not).
  3. unc-2 Offline unc-2
    unc-2 (Nikolai Malyugin) 24 May 2023 15: 12
    The market economy will destroy everything. Why cry? Sanctions are never imposed on someone else's. Only on one's own. For their seeds, for hatchery eggs. Did you believe in free cooperation? Blessed are those who believe.
    1. Raymond Offline Raymond
      Raymond (Raymond) 24 May 2023 22: 07
      No, everything works well, what is good, rare and of high quality, is expensive and sells well ... what is bad, in abundance or low quality, costs nothing and is not sold - this is the law of supply and demand in conditions when prices are free.

      And that's the driving force behind your work, you have to make good, high quality, rare... And you will sell at a good price.

      Examples: Why don't a Russian machine tool, a Russian car or a Russian plane cost anything, sell well or cheaply? ... simply because these products are inefficient, of low quality and in relative abundance.

      And sometimes that's a shame, because it would take a little more to make a product that much better in quality.
      1. Nelton Offline Nelton
        Nelton (Oleg) 25 May 2023 09: 11
        Quote from Raymond
        why do a Russian machine tool, a Russian car or a Russian plane cost nothing, sell well or cheaply?

        Russian cars / machine tools / aircraft are completely sold, up to SVO - incl. for export.
      2. Nelton Offline Nelton
        Nelton (Oleg) 25 May 2023 10: 54
        Quote from Raymond
        Russian aircraft cost nothing, are not for sale

        this week, the 1st of the ordered Be-200s was handed over to Algeria

        1. Raymond Offline Raymond
          Raymond (Raymond) 25 May 2023 19: 43
          Well, let's look at this example... Beriev Be 200:

          12 tons of cargo in water for 43 tons at takeoff. Entered service in 1998, since then 25 aircraft have been built.
          And this is a descendant of the Beria Be-42, born in 1986 ...

          At the other end of the scale, the Canadair CL 415, a legacy of the 215 CL 1969, 130 produced, 6 tons of water per 17 tons of take-off... but capable of 2,6 times the RPM and 95 built. between 1993 and 2015, soon to be replaced by DHC 515 expected in 2025.

          Words that come up when compared: but what do builders do in such a big country as Russia?
          1. Nelton Offline Nelton
            Nelton (Oleg) 25 May 2023 22: 49
            Quote from Raymond
            At the other end of the scale, Canadair CL 415 aircraft

            We discussed Russian products, not Canadian ones.

            You stated that Russian planes are not for sale. You have been given a fresh example of export deliveries (which in modern times is generally extremely difficult for
            political reasons).
            There were still deliveries of Su-3x.
            Helicopters since the times of the USSR have been going and going well.
            1. Raymond Offline Raymond
              Raymond (Raymond) 26 May 2023 18: 46
              The Algerian order for the BE 200 is 4 machines placed in 2021... resulting in 25 built for a production program established in 1998 (35 years). Competitor - 95 aircraft in 22 years of production.
              1. Nelton Offline Nelton
                Nelton (Oleg) 26 May 2023 19: 06
                Quote from Raymond
                Competitor - 95 aircraft

                Competitors are great, but we did not discuss them.

                Discussed your categorical thesis, what they say

                Russian planes / machine tools / cars are not for sale at all
                1. Raymond Offline Raymond
                  Raymond (Raymond) 27 May 2023 21: 33
                  What I wrote:

                  Examples: Why do a Russian machine tool, a Russian car or a Russian aircraft cost nothing, sell poorly or be cheap?... simply because these products are inefficient, of low quality and in relative abundance.
    2. Raymond Offline Raymond
      Raymond (Raymond) 28 May 2023 09: 05
      I believe we have been hearing this speech since 1925, except that Keynes was more positive on the subject than you.
  4. AntoxaRus Offline AntoxaRus
    AntoxaRus (Anton) 31 May 2023 11: 47
    As soon as they make dry, normal in quality, good, I will take it.
    And so excellent Chilean costs 329-399 r in K&B, and Phanagoria, which you can still drink, costs 600-700 r, and what's the point of supporting a domestic producer if wine from the other side of the world is better and cheaper.