Wine seeks to grow in Russia after falling 46% in 2020

Published 2021년 5월 22일

Tridge summary

The article explores the significant challenges faced by Argentine wine exports to Russia, a key market, in 2020 due to new regulations and a tax on bulk wines. These changes, aimed at protecting Russia's local wine industry and encouraging the consumption of locally produced wines, resulted in a nearly 20% drop in wine export value and a 46% decrease in volume from Argentina. The article highlights the difficulties these restrictions have brought to the Argentine wine industry but also sees potential in the promotion of bottled wine from Argentina. Stakeholders like ProMendoza are advocating for the marketing of Argentine wine as fractionated wines become more favored in the Russian market. The article suggests that with the correct promotional strategies and by addressing the new market realities, there is potential for Argentine wine to regain its foothold in Russia despite the initial setbacks.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

2020 was a difficult year for wine exports to the Russian market after they added a wine tax and amended their legislation, blocking the use of bulk to mix with Russian wines. That generated a significant drop in Mendoza exports and, from the sector, they are looking to reverse the impact. The general numbers indicate that wine exports went from US $ 10,615,026 in 2019 to US $ 8,255,505 last year, a fall of almost 20%. In volume, it went from 7,713,366 liters in 2019 to about 4,185,507 liters last year, a 46% drop in volume. Apart from the contraction due to the pandemic, two restrictions explain this fall. First, at the end of 2019 the Russian Federation applied a tax for bulk wines and concentrated musts, an extra tariff of 31 rubles per liter of wine and / or must (as of April 18, about US $ 0.42 ). That in addition to paying the 15% import duty and all internal taxes. Second, in mid-2020 a new regulation was applied in Russia that does not prohibit importation, but determines ...

Source: Losandes