The threat of ‘nyet’

Companies like Pernod Ricard are upping their export volumes to Russia amid fears that alcohol might soon be included in Russian sanctions in retaliation for those imposed on it by the EU.

Such companies hope to create an ‘inventory buffer’ according to Rabobank in its Q3 quarterly report on spirits.

“Foreign spirits companies have faced increased scrutiny by the Russian government and Sazerac’s Kentucky Gentleman Bourbon, Jack Daniels Tennessee Honey and Jim Beam have also been removed from Russian shelves under the guise of consumer safety violations,” reports Rabobank.

Scotch and cognac accounted for nearly half of Russia’s $1.4 billion spirits imports in 2013. When other whiskies are included, that figure is 70%.