Brawl over Bottles Ensues
In the Vologda region of Russia, the retail chain Red & White, managed by LLC "Alpha-M", is embroiled in a legal dispute over its alcohol license. The company filed a lawsuit with the Arbitration Court of Vologda Region on July 29, seeking to restore its license and recognize and cancel the regional Ministry of Economy's order suspending it.
According to reports, the lawsuit was prompted by unspecified violations by the controlling authority. Elena Kozina, managing partner of the "ELKО profile" law firm, stated that businesses can succeed in challenging such license provisions only if they can prove significant violations by the controlling authority.
As of August 4, neither Red & White nor the Vologda Region's Ministry of Economy had responded promptly to Kommersant's requests for comment. The retailer is also seeking to suspend the order's enforcement during the court hearings, but the arbitration court refused on June 30.
The problems of Red & White in the Vologda region could serve as a negative signal for the market as a whole. As other retailers, including Metro and Global wine shops, have had to restructure their operations in the region due to regional policies, the suspension of Red & White's license may indicate a broader trend of increased regulation in the alcohol trade.
Andrei Moskovsky, president of the "Alcopro" guild, believes that the suspension of a major retailer's license due to unannounced violations will encourage regional authorities to push for new alcohol trade restrictions. Moskovov, on the other hand, believes that this policy may not lead to a real reduction in alcohol consumption, as demand may shift to neighboring regions.
One Global wine shop outlet in the Vologda region will continue to operate under the new name "Wine Shop 104". Meanwhile, the founder of the Red & White network, Sergey Studennikov, refuted the information about the network's cessation of activities in the region. Studennikov expressed opposition to bans in an interview with RБK in November 2024.
Despite the ongoing legal dispute, Mercury Retail Group, the parent company of Red & White, reported a strong financial performance in January-March 2025, with revenue of 365 billion rubles, a 23.1% increase year-on-year. However, only 58 out of the 21,200 Red & White stores are currently operating in the region, according to "Infoline-Analitics".
The available search results do not contain specific information about the legal dispute between Red & White and the Vologda region authorities regarding the retailer's alcohol sales license. It may be necessary to consult specialized legal databases, regional news sources from Vologda, or official statements from either Red & White or Vologda regional authorities directly for more detailed information about this dispute.
- The legal dispute between Red & White and the Vologda region authorities over the retailer's alcohol sales license could potentially set a precedent in Russian politics and general news, as it raises questions about the regulation of the alcohol trade and the authority's oversight.
- The ongoing legal battle between Red & White and the Vologda region authorities, rooted in unspecified violations by the controlling authority, also highlights the potential consequences for other retailers operating in the region, influencing their strategic decisions in the face of increasing regulations.
