Russian producers won’t raise prices on champagne for the New year

© Fotolia / Africa StudioЛюди clink glasses of champagne. Archival photoRussian producers won’t raise prices on champagne for the New year© Fotolia / Africa Studio

The largest Russian producers of sparkling wines and champagnes do not plan to in the near future to raise prices on these traditional new year’s drink, despite the expected demand and the decrease in the grape harvest this year in some regions. However, according to experts, in 2018 the price of champagne will still grow at least 7%.

Recently, media reports, citing retailers reported an expected increase in the price of champagne for the New year by 10-15% due to increased demand for beverages. Forecast they confirmed importers of sparkling wines, linking the situation with the poor harvest in Europe. The Russian manufacturers, according to them, the expected growth of the minimum retail prices.

Not to stagnate

Sales Director of one of the largest producers of sparkling wines and champagnes in Russia JSC «Tsimlyanskoe wine» (Rostov region) Sergey Nikolayev, told RIA Novosti that raise the price of the New year, they will not. He explained that wineries 45-50% of sales from the production of accounts for the last four months of the year, when aktiviziruyutsya demand.

«The price at this time should not go up from the point of view of logic and of economy, because the manufacturer hopes that it will pour in this year, it’s all in the same year and put on a shelf,» he said, adding that since February has already begun the bottling of last year’s harvest. Companies are interested to sell the drink in season, «so as not to stagnate».

In turn, trading networks, according to him, usually by the New year prices are also not raised to accelerate sales and get more profitability.

No prerequisites

The largest producers of champagne and sparkling wines of Kuban interviewed by RIA Novosti, confirmed that price growth this year should not wait. «The increase in prices for champagne and wine for the New year we do not plan», — said the Agency’s Director of public relations of JSC «Abrau-Durso» Olga Nicholas.

The same policy is followed in the company «Fanagoria». «I want to emphasize that the situation with the harvest in 2017 cannot be the reason for the increase in prices of sparkling wines that are in compliance with all technological norms and rules are prepared from the harvest of 2016… So by the manufacturers believe that there are no prerequisites for the rise in price of sparkling wines for the New year», — told RIA Novosti the representative of the company.

Promotions and discounts

No plans to increase prices and the company «Kuban-Vino». «Moreover, typically the New year we are launching great bonuses and promotions to our customers that allow you to purchase our wine at lower prices», — said the employee of the company.

According to the Chairman of Council «Association of winegrowers and winemakers of the Crimea «the Crimean Bureau of Grapes and Wine» Yanina Pavlenko, the majority of wines in Crimea are made from local grapes. «Companies announced price reductions for the New year. So, «Zolotaya Balka» and «Inkerman» have already launched promotions that will allow Crimeans and guests of the Peninsula to buy a sparkling New year at discount prices. Discounts start from 15%. Also suggestions for the holiday and is now preparing the «New light,» she said.

The company «Massandra» in the summer launched the campaign «Make available to the Crimea», during which the price of wine products in all shops of the enterprises was reduced by 30-50%. It is expected that such prices will continue at least until Christmas.

Importers already took care of it

According to the representative of «Phanagoria» prices for imported wines are also New year will not grow. Importers, according to him, has acquired and imported wine in Russia at the old prices. «Objectively increase in prices for wines from European grapes can take place when this increase will be announced in Europe, and more expensive wines will be released to the market», — said the source.

Sales Director «Tsimljansky wines» Nikolaev also noted that imported alcohol is unlikely to rise in price for the New year. «Logistics, excise duty, customs duty – all this is already included in the price, and network price increase in the season take very negatively,» he said.

Forecast to 2018

Thus as early as next year, according to Nikolaev, the increase in the price of champagne can range from 7 to 15% due to reduced yield in some regions of Russia this year while keeping the costs down, including labor, electricity and components. «We understand that it will be at least 7% and possibly up to 15%», — he said.

Nikolaev added that if the price increase will be significant, most likely it will be held in two stages – from the beginning and in the middle of the year. Most sensitive to changes in cost, in his opinion, the average price segment. Expensive segment sales, as a rule, stand still, said Nikolayev. He also noted that in recent years there has been a downward trend in demand for champagne in General in favor of a group of wine beverages.