November 5 2007, 11:00

Moldovan wine will cost 30% more expensive in Russia

The supplies of Moldovan wine and cognac to Russia have been resumed. On the 1st of November "Vismos" complex sent the first shipment of Champagne wine to Russia; the products of "Kalarash-Divin" plant have already reached Moscow and they should enter the shelves of Moscow stores today. Moldovan alcohol has become 30% more expensive; its major volumes will reach the supermarket shelves only by New Year: the other plants will need at least one month to ship their products to Russia.

First truck with "Divin" cognac has been unloaded in the warehouse in Moscow after clearance control, according to information provided to "Kommersant" by Yuri Dranga, Commercial Director of Joint Moldovan-Russian enterprise "Kalarash-Divin". Twenty-two thousands of bottles with cognac, produced by "Kalarash-Divin" plant have been finally tested by the specialists of Russian Consumption Inspection Service. "Our products will enter the shelves of the capital on Monday", Mr. Dranga hopes. Russian-Moldovan complex "Vismos" shipped three wagons with Champagne wines from Moldova to Russia yesterday.

Russian and Moldovan authorities have been regularly announcing about the resuming supplies of Moldovan alcohol since June 22nd, when Vladimir Putin, the President, met with Vladimir Voronin, the President of Moldova, and agreed to solve "alcohol" issue. Mid October Russian Consumption Inspection Service allowed 15 Moldovan enterprises to resume supplies to Russian Federation. The ban of the supplies of alcohol has been in effect since March 2006 because Moldovan wines and cognacs failed to meet requirements of Russian standards. As a result, the exports of Moldovan wines declined almost twice, $313 mln. in 2005 down to $173 mln. in 2006. Although earlier occupying 34.1% of market (according to "Business Analitika" data), Moldovan wines were replaced by Russian and inexpensive European and the New World wines.

Valeriy Mironesko, General Director of Agri-industrial agency "Moldova-Vin" said at "Interdrink" exhibition on Wednesday that "by 2008 Moldovan wine producers are ready to restore 75% of the volumes shipped before the supplies have been banned by Russian Consumption Inspection Service". Moldovan suppliers doubt that these terms are real. "Kalarash-Divin" needed around a month and a half to file all needed documents, Yuri Dranga said. According to estimations done by Yevgeniy Kalabin, the General Director of Trade House "Inter-Republic Wine Plant", in average three-four weeks pass from the moment the products are shipped from Moldovan plant till they are listed on the shelves of Russian retail: "the cargo is delivered during around two weeks, three to five days are needed for customs clearance, one week to get the conclusion of Russian Consumption Inspection Service, and finally one week to place bottles on the shelves".

According to Mr. Dranga, other suppliers, except for "Vismos" (which has already supplied first shipment of Champagne wines to Russia), have not started delivering alcohol to Russia. Yuri Dranga forecasts, four to six large producers will enter Russian market by the end of year, such as "Krikova", "Maliye Mileshty", and "Bouquet of Moldova". Vitaliy Axaniy, General Director of House "Bostavan", one of the largest Moldovan producers, confirmed this information - he informed that the products of his company will reach Russia only by New Year holidays. "Now we are negotiating with distributors and chains, solving logistics issues - we plan to start shipping wine from the plant not earlier than in a month", he informed.

Moldovan producers make no secret, that now their products will cost 30% more expensive in Russia. According to Sergey Borets, General Director of "Krikova-Akoreks" company, one of the largest wine enterprises in Moldova, the producers will have to pay for modernization in order to meet the requirements of Russian Consumption Inspection Service. As a result, the minimal price of one bottle will increase $3.64 to $4.86. For example, a bottle of "Divin" cognac 0.5 L cost $8.1 before the ban; now the price will increase up to $8.9. Moldovan wine will leave low price and occupy middle price segment - it will compete with inexpensive European, Argentinean and Chilean wines.