In a market that is dominated by local wine, Russian consumers are beginning to open their wallets for New World wines. In fact, sales are up 59% this year over last for wines imported from Chile, Australia and South Africa. Wines from Moldova have the highest share of the local market (39%) thanks to being tariff free, allowing for a 20% pricing advantage over their competitors.
That could all change if Russia succeeds in joining the World Trade Organization next year, which could level the playing field, said Igor Serdyuk, founder of the wine magazine Magnum. Without protective tariffs, affordable New World wines could decrease in price enough to rival vodka, he said.
In restaurants, the novelty of buying a new world wine is high, and the price can be very similar to old world wines. Wine from the U.S. has yet to make a noticeable impression on the locals. However, when wine giants from the U.S. start to recognize the buying power of the $2.4 billion retail market, we’re bound to see expansion to Russia. The Russian Federation is the largest country in the world geographically (twice the size of Canada) with less than half the population of the U.S (about 140 million).
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