Drink brand Brandy has been removed.
In the first seven months of 2025, retail sales of cognac in Russia have experienced a significant drop, with a decline of approximately 9.8% in volume [5]. This decline can be attributed primarily to a price increase of about 1% for cognac amidst broader inflationary pressures in Russia during this period [2].
According to the Russian Federal Statistics Service (Rosstat), this price hike likely contributed to reduced retail demand for cognac [2]. The overall retail sales of alcoholic beverages, including cognac, have declined in Russia, reflecting changing consumer demand and possibly government policies [1].
Vladimir Komarov reports that consumers of affordable cognac have switched to other spirits like whiskey, gin, and rum, with natural sales of these spirits increasing by 9.4%, 12.7%, and 17.1% year-on-year, respectively, in January-June [5].
Alexander Grevtsev, on the other hand, highlights difficulties in supplying products from Armenia due to new quality certification requirements, causing long delays at the Georgian-Russian border. However, there is no direct evidence in the current data that these supply disruptions significantly contributed to the decline in cognac sales in Russia [2].
The demand for "first price" brandy has decreased, according to Mr. Grabiar, but the share of French cognacs in the overall structure of retail alcohol sales remains insignificant. Interestingly, Veniamin Grabiar reports a 21.1% year-on-year increase in demand for French cognacs in June and a 18.8% increase in July [4]. Despite this, he expects the decline in brandy sales in Russia to continue throughout the year.
Production of cognac distillate has almost halved, to 15.3 million dal, and Russian production of cognacs in January-July decreased by 19.3% year-on-year [3]. Premium products, such as French cognacs, have not been affected by a decrease in consumer interest.
Georgia may be intentionally blocking alcohol supplies to Russia, according to a report by News.am, but this is not explicitly mentioned as a factor in the decline of cognac sales in Russia.
References:
- Industry Commentaries
- Russian Federal Statistics Service (Rosstat)
- RATK
- Veniamin Grabiar Reports
- Nielsen Data
- The change in consumer demand in Russia might extend to sports events, as some might opt for watching games over drinking cognac, given the recent trend of switching to other spirits like whiskey, gin, and rum.
- Despite the unpredictable weather patterns in Russia, the decline in cognac sales is likely to persist for the remainder of the year, influenced by factors such as changing consumer demand, increased prices, and supply disruptions.
