Never mind the oligarchs. Russia is probably the most exciting new wine market to emerge in the past five years. Why? Because a growing slice of ordinary middle class Russian society has developed a taste for quality wine, according to Wine Intelligence’s Russian Wine Market Landscape report, published on 14 November 2008.

 Based on a groundbreaking consumer survey of Russian drinkers of imported wine, and containing both the latest sales data and information about routes to market, this report provides an unprecedented insight into a rapidly growing wine market on the doorstep of Europe.

Unlike in the emerging Asian markets – to which Russia is often compared – people in this country are familiar with wine and are used to drinking it at the table with food. Wine was actually a popular choice during the Soviet era, and today Russians treat imported wine, especially from traditional European winemaking areas such as France, as a product with an important cultural value.

However Russia’s modern wine market is still relatively immature and has suffered two serious crises in the past 10 years, the financial crash of 1998 and the 2006 wine tax crisis – and as we enter the final weeks of 2008, the threat of a global economic downturn may yet precipitate another crisis in the wine industry.

Moscow is fundamental to the success of any aspiring wine producer, representing at least two thirds of all wine sales. It is followed by St. Petersburg, and a handful of other key population centres. With its Vinitrac® Russia study, Wine Intelligence has been among the first to survey real consumer behaviour in Moscow and St. Petersburg, and the results of this groundbreaking consumer research are contained in the report.

While the global financial crisis may dampen some demand in the short term, the long term picture for wine in Russia is very encouraging. Wine Intelligence predicts that the Russian wine drinking population will more than double by 2020, which gives an opportunity for further sales and consumption growth. The challenge for the wine trade is to sustain this increase, as well as to educate a relatively unsophisticated market.

 Earlier this year, Arniston Bay and Kumkani expanded their global footprint and entered this strategically important market despite complicated export procedures. A diverse variety of wine from these award-winning brands will be sold at major retailers in Russia.

 Business development manager, Mark Lester, said early indications are that Arniston Bay and Kumkani wines have a promising future in the Russian market. “Traditionally, Russian palates have leant towards European-styled wines as a result of historic influences on consumption patterns. However as the footprint widens for Russian businessmen and leisure travelers to countries beyond European shores, increased exposure to New World wine producing countries and their wines are bound to have an influence on their buying decisions back home. Simultaneously, the current growth in the number of New World brands appearing on local shelves in Russia along with improved access to disposable income will further contribute to interest creation and increased demand for these wines.”

Source: wine.co.za