The English Will Taste 'Sovietskoye'. Soyuzplodoimport started to supply its brand to Great Britain

The Federal state enterprise Soyuzplodoimport was established in 2001 by the resolution of the RF Government. It deals with organization of production and distribution of food stuff, alcoholic and soft drinks under trademarks belonging to the RF, both in Russia and international markets. The enterprise owns a number of trademarks for traditional Russian vodkas, liqueurs, champagne and sparkling wines. The main brands are Stolichnaya, Moskovskaya, Russkaya, Sovietskoye etc. Share of Sovietskoye takes about 50% of the Russian market of sparkling wines.

As they told RBC Daily in Soyuzplodoimport, the first batch of Sovietskoye of 1 thous decalitres was shipped from Istok plant to Great Britain at the end of December last year. According to the head of Soyuzplodoimport`s public relations department Julia Goncharova, Sovietskoye will be positioned at the British market in economy segment: 0,75 l bottle will be sold at 4-5 pounds (10-12 dollars.). Soyuzplodoimport sees an Italian cheap sparkling wine as the main competitor of its brand in Great Britain. Ms. Goncharova remarked that earlier Sovietskoye was exported only to CIS countries. 'Now we are also keeping active negotiations with companies from Turkey, Germany, Hungary and Serbia about supply of the brand,' she added.

As they told in British company Hermitage Collection, which deals with distribution of Sovietskoye, at first the Russian sparkling wine will be sold mainly in small London shops selling products from Eastern Europe and intended for immigrants from ex-Soviet republics. 'This year we also intend to enter the segment of HoReCa: there are bars and clubs, which are interested in using Sovietskoye. In future, we have plans to enter the national level of distribution, the work with large retail chains like Tesco and Sainsbury,' representative of Hermitage Collection Alex Klaos told.

Participants and experts of the market, however, are skeptic about perspectives of Sovietskoye in Great Britain. 'I do not think that the British market would be interesting in terms of supplies of sparkling wine from Russia' the general director of Inter-republican wine plant Evgeny Kalabin thinks. - Italian producers have very good positions in sales of sparkling wines there, and they sell their products even at lower price.' As Mr. Kalabin estimates, the promotion of Sovietskoye in Great Britain will require not less than 500,000 pounds per year. The Director of the Centre for study of federal and regional alcoholic markets Vadim Drobiz thinks that Sovietskoye will be able to compete in Great Britain only with cheap sparkling wine produced by retail chains under their own brands.

In addition to Soyuzplodoimport, Sovietskoye brand is supplied to the European markets by Kiev plant of champagne 'Stolichny.' As they told RBC Daily at the plant, the wine is being sold in Germany, Belgium, Luxemburg, Slovakia, and Estonia; there are plans for Poland: 'In Great Britain the rights for the brand are recorded in favour of Soyuzplodoimport, therefore we do not work there.'

Last year the British market was actively developed by the Russian vodka companies, including 'Russky alcohol' and 'Parliament Group.' The brewers were also there: in September 2007 'Baltika' started licensed bottling of beer of the same name at Scottish & Newcastle facilities.