Armenia will continue cognac supplies after Pernod Ricard leaves Russia
Photo: Ivan VISLOV
Of course, you can’t start Friday morning with such sad news, but you have to. The largest producer of popular alcohol Pernod Ricard closes its representative office in Russia. This French manufacturer owns the world famous brands Chivas Regal, Jameson, Ballantine`s, Beefeater, Absolut, Olmeca and even the Armenian cognac Ararat. The news of the exit did not come as a surprise, this became known six months ago, when a message appeared on the company’s website: “At the end of April 2023, the export of all its international brands to Russia was stopped. We will also stop operating in Russia and we expect this process to take several months.” And now this moment has come. According to some reports, the French will finally leave at the end of August.
But do not despair, we will not run out of alcoholic beverages.
– Our market will not notice your departure. Since I did not notice the departure of previous Western alcohol companies (see below), Vadim Drobiz, head of the Research Center for Federal and Regional Alcohol Markets, is sure. – Since last year, a system of parallel imports has been working successfully in Russia. Previously, we worked within the framework of international standards. When a trademark owner registers his trademark in the country where he plans to supply, he opens a representative office there and completely organizes sales as a monopoly. And for parallel imports, the products of the departed manufacturer are imported by multiple suppliers at once. This creates a certain instability in the market, because someone wears a lot, someone a little, but it ensures the presence of the brands in the shop windows. Pernod Ricard’s products are not going anywhere, it’s just that the supply chain will be different.
At the same time, according to Drobiz, drinks will not rise in price and may even become cheaper due to competition between suppliers.
However, we will not count on this – the dollar behaves too unpredictably, and excise duties are rising in price.
Ararat Armenian cognac is of great concern, its production has been owned by Pernod Ricard for some time. Will it disappear from our stores?
– “Ararat” is a product not for the world market, but for the countries – the former republics of the USSR, – says Vadim Drobiz. – 90% of deliveries fall to Russia, Ukraine and Kazakhstan. Of these, 75% is our market. And it will not be empty. Armenia will continue with its deliveries. But there are nuances. The fact is that France is fighting with the whole world so that only those drinks that are produced on its territory are called cognac. Armenia, according to the French, cannot produce cognac. Therefore, the country signed an agreement with the European Union, in which it is allowed to use the term “cognac” for another 10 years, and then they will have to change their name. Most likely, it is brandy from Ararat, but with the same cognac quality.
WHICH MANUFACTURERS OFFICIALLY LEFT RUSSIA
– Diageo – brands Johnnie Walker, Captain Morgan and Baileys
– Brown-Forman – Jack Daniels and Finland brands
– LVMH – brands Hennessy, Moet & Chandon and Bacardi