The distributor enters the premium segment

Finnish Saimaa Beverages, which intends to take 20% of the premium vodka market in Russia, has found a partner with whom it hopes to solve this problem. It was the Eastern European Distribution Company (EDC) of Vasily Anisimov: starting next week it will begin the exclusive sale of Saimaa and Drova vodkas. VEDC has long been trying to enter the premium segment, in particular, it reached an agreement with Russian Standard.

Saimaa Beverages Oy Ltd announced its entry into the Russian market in June last year by establishing a subsidiary, Organic Vodka Group (OVG). Now the company is represented in Russia by two vodkas - the premium Saimaa, which is produced in Finland at its own enterprise, and also - in the low-premium segment - the Drova brand, produced at the Nizhnelomovsky Distillery (part of United Penza Distillery LLC). By 2013, the company set itself the goal of occupying 3.5% of the Russian vodka market and 20% of its premium segment. During this time, the company was going to spend €217 million on promoting its products.

VEDC will be responsible for sales of OVG vodkas from March, two sources in the alcohol market told Kommersant. VEDC General Director Vadim Kasyanov and OVG General Director Sergey Kleshchukov confirmed this information. “The agreement was signed last week, and starting next week we will begin selling their products through our distribution,” said Mr. Kasyanov. He noted that VEDC will be the exclusive seller of OVG products. “VEDC’s capabilities as a distributor will ensure the presence of our products in 90% of federal retail, which will allow us to accelerate the achievement of our goals of conquering the market,” Mr. Kleshchukov commented on the partnership.

VEDC was created in August 2009 by the structures of Coalco co-owner Vasily Anisimov. Wholesales its own brands (vodka "Dvoinaya", "Bely Klyuch", cognac "Dukat"), as well as "Rosspirtprom" (vodka "Dymka"), "Soyuzplodoimport" (cognac "Moskovsky", champagne "Sovetskoe", vodka "Russian" ", etc.), "Promimpeksa" (vodka "Putinka"). According to its own estimates, it is the largest distributor of vodka in Russia. According to SPARK-Interfax, revenue in 2010 was 3.97 billion rubles, net loss was 559.6 million rubles.

Financial indicators and owners of Saimaa Beverages are not disclosed.

“For us, the main interest in cooperation with OVG is related to their premium vodka Saimaa, the price of which on the shelf is about 350 rubles for half a liter,” says Vadim Kasyanov. This will be the most expensive product in the VEDC portfolio, which has long been planning to enter the more marginal premium segment. Since the fall of 2010, the company has been negotiating with the owner of Russian Standard, Rustam Tariko, about the exclusive distribution of his alcohol brands (including imported Remy Martin cognac, Cointreau liqueur, Piper-Heidsieck champagne, etc.), however, the partnership of the companies was limited to test sales in the regions of the Far East. East and Kaliningrad region.

According to the director of the CIFRRA agency Vadim Drobiz, now the annual volume of the premium segment (vodka from 250 rubles per 0.5 l) is 2.5-3 million decaliters: the leader there is Russian Standard with a share of 30%, followed by Alcoholic the Siberian group (brand "White Birch") with 17% and the St. Petersburg "Ladoga" ("Tsarskaya") with 12%. “VEDC is, of course, a strong partner for OVG, but in premium they are unlikely to be able to take more than 10% in the next two years. This segment is almost not growing, and competition there is high,” the expert believes.

Oleg Trutnev

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