Moet Hennessy will suspend the supply of champagne to Russia. Due to the requirement to call it “sparkling wine”
The producer of premium alcoholic drinks Moet Hennessy has warned that it will temporarily suspend the shipment of champagne to Russia. The company “Moet Hennessy Distribution Rus” announced this in a letter to its Russian partners, write RBC and “Vedomosti” , citing sources in the Russian market.
The company decided to suspend the supply of champagne due to the new alcohol regulation law. The law, which was signed on July 2 by Russian President Vladimir Putin, allows the use of “champagne” only in relation to “Russian champagne” produced in Russia.
“And [the law] obliges champagne producers from the French Champagne region to rename their products to ‘sparkling wine,’” Moet Hennessy said in a letter.
The company added that due to the adopted amendments, “Washes Hennessy Distribution Rus” needs to re-certify champagne wines in order to change the category to sparkling wine, as well as product labeling. The champagne producers “have not confirmed their readiness to change the category of champagne wines for the Russian market,” the letter says.
About 50 million liters of imported sparkling and champagne wines are supplied to Russia annually, of which 13% falls on France, said Vadim Drobiz, director of the Center for Research on Federal and Regional Alcohol Markets. According to him, the share of Moet Hennessy in total foreign supplies is less than 2%. Every year Moet Hennessy imported 600-800 thousand liters to Russia for up to $ 20 million.