Rising rates of excise duties on alcohol beverages make the manufacturers and importers cut down expenses. One of the ways to do it, in experts’ opinion, is to relocate the plants to Russia. Such a possibility is being considered now by Diageo and Bacardi Limited. These two largest producers have no doubt they will be able to reduce cost of finished goods by 15-20% in case they launch production in this post-Soviet country.
Diageo’s spokesman stated that the company is planning to manufacture its Johnnie Walker at the Ladoga distillery in St. Petersburg, where the Smirnoff vodka and Shark Tooth, the domestically-produced rum targeted at the Russian middle class, have been already being produced. Given the growing popularity of the latter alcoholic beverage among the local consumers, the company’s experts are in tune with this idea. “Import of whiskey to Russia is going up quickly, so we are thinking of the methods to expand our presence on the market,” Natalia Tshenayeva, Diageo spokesperson said. In the meantime, Bacardi is hoping to parlay its business into William Lawson's brand manufacturing at Moscow Inter-Republican Winery.
Let’s hope that the quality of the production will meet international standards. To date, Diageo plc is the key whiskey supplier to Russia having a 31% stake, while Bacardi accounts for 15%. Diageo, the British multinational alcoholic beverages company, is famous for such brands like Johnnie Walker, White Horse, Captain Morgan, and Gordon's. Bacardi Limited includes premium spirits like Dewar's Blended Scotch whisky, Martini vermouth and sparkling wines, and Bacardi rum.
