Phenomenal growth in Russia

Tuesday, 16 May, 2017
Vladimir Gorodkov
There are exciting developments in export of SA wines to Russia. Administration of Festival of SA wines in Moscow is proud of its fair contribution to this achievement.

Export of South African packaged wines to Russia shows phenomenal growth! In the period from May 2016 to April 2017, it reached 4.5 million liters, which is 2.5 times higher than in the corresponding period of the previous year. This places Russia in the Top 10 export markets for packaged South African wines and makes it the fastest growing market by far. The nearest competitors of Russia in terms of growth rate are Switzerland and Estonia with volumes of less than a million liters each and growths of 14%.

Total supplies of wine from South Africa to Russia (including bulk) increased to 33.8 million litres in the same period, which is 1.8 times higher than in the previous year and positions Russia as the third biggest buyer of South African wines overall! At the same time, import from South Africa constitutes only 2% of the total Russian wine imports, providing high potential for a further increase of the market share.

The biggest importers of South African wines to Russia in 2016 were (the main imported brands are in brackets):
1. Luding / L-Wine (Cape Art: Origin Wines; Cape Elephant: Lutzville; Diemersdal)
2. Marine Express (Robertson Winery; Cape Diamond: Lutzville; Boekenhoutskloof; etc.)
3. AST-International Environment (KWV)
4. Vintegra (Zafara; Overhex)
5. Ladoga (Perdeberg)
6. Synergy (Distell: Obikwa, Amarula)
7. Simple (Fairview; Spice Route; Nederburg; Two Oceans; DGB: Culemborg)
8. Eurowine (Kumala; Flagstone; Kaapzicht; L’Avenir)
9. Fort (African Pride: Cape Maclear; Simonsig)
10. Somelier (KWV; Leopard’s Leap)
11. Magnit (Excelsior; Stellenbosch Vineyards: Welmoed)
12. Azbuka Vkusa (Bon Courage; DGB)

This outstanding achievement provided a remarkable background for the annual celebration of South African wines. The VIII Festival of South African Wines in Moscow (FSAW 2017) took place at the Metropol Hotel on 25 April. Located just a few steps away from the Kremlin and the Red Square, Metropol is arguably the most well-known historic venue at the very heart of the Russian capital.

Great variety of South African wine brands were presented at the white-cloth wine tasting at the luxuriously decorated Onegin hall. The main idea of the Festival is to show the complete range of South African wines which are available in Russia. Therefore, the majority of wines were exhibited by local importers which enthusiastically demonstrated their portfolios to the professional audience. Several producers, such as Johan de Wet of DeWetshof, Chris Saager of Eikendal and Garreth Anderson of DGB, joined their distributors to assist in presenting their fine products.

Winemakers who did not have distribution in Russia yet formed a separate section at the Festival. These winemakers came to Moscow to meet importers and to discuss potential cooperation. The fact that two producers – Eikendal and Bolland Cellars - had signed deals with distributors after participating in the Festival last year provided a lot of confidence and hope to the newcomers. To introduce some of the new brands two masterclasses were delivered by DeGrendel Estate and the DGB.

Festival guests were very enthusiastic about both new and well familiar wines. Winemakers from South Africa were impressed with the extensive professional knowledge and genuine interest of the visitors. Over 600 attendees passed through the Festival doors and over 70% of them were representatives of the professional community: sommeliers, retailers, distributors and importers. Over years it became obvious that quality of the attendees is far more important than quantity, and organizers commit a lot of effort to filtering and verifying applications during the registration.

It became a good tradition that the Festival is supported and well attended by the diplomats of the Embassy of RSA in Russia. This event was not an exception. Her Excellency Ambassador of South Africa Mrs. Nomasonto M. Sibanda-Thusi, accompanied by the diplomats of the Embassy, delivered a short welcome address to the participants and guests and attended the master-class. The Ambassador reiterated the strengthening ties between the countries, increasing cooperation within BRICS, and cancellation of visas for short-term visits between Russia and South Africa.

The Festival was organized by the Wine Extreme agency and was dedicated to the Freedom Day of South Africa and the 25th anniversary of establishing the diplomatic relations between South Africa and Russia. The next Festival is planned for April-May 2018 and will surely see even more exciting South African brands and Russian importers finding each other. South African wines are poised to win the well-deserved share on the menus and shelves, and in the hearts of the Russian consumers. For enquiries please contact vladimirgorodkov@gmail.com.