Domestic vodka has surged in popularity in Russia as locals increasingly turn to more affordable homegrown options for their alcoholic fix over pricier imported alternatives.
As a result of their rapid growth, two Russian vodka brands, Belaya Berezka and Tsarskaya, came first and second in the 2023 global ranking of the fastest-growing brands by Drinks International's The Millionaire’s Club.
Drinks International is a British magazine that releases an annual ranking of alcoholic beverages known as The Millionaire's Club. The list highlights spirits brands that each sell over 9mn litres annually. The 2024 edition features 155 brands, including vodka, gin, brandy, whisky, tequila and rum. 38 of these are vodka brands.
The growth in popularity of Belaya Berezka and Tsarskaya comes as a result of popular Western brands pulling out of the country in response to Moscow’s invasion of Ukraine. While actual vodka consumption has only marginally risen, the huge gap in the market left by the likes of international drinks conglomerates Diageo and Pernod Ricard has been filled by local alternatives.
Belaya Berezka saw its global market sales surge by 54% over the past year, reaching 2mn nine-litre cases, equivalent to approximately 1.76mn dekalitres (dal; 1 dal = 10 litres). According to Natalia Nevotorova, the director of the key portfolio of Belaya Berezka’s parent company Alcohol Siberian Group (ASG), the brand's expansion in Central and Southeast Asia, as well as the Middle East, has been a key driver of this growth. However, despite this international success, 98% of the brand's sales remain within the Russian market. ASG plans to increase total sales by another 0.5mn dal, both domestically and abroad, this year.
Ladoga's Tsarskaya vodka also experienced robust growth, with sales increasing by 44% to 2.3mn nine-litre cases, or 2mn dal. Speaking to Drinks International, Ladoga's president Veniamin Grabar explained that Tsarsakaya has managed to successfully compete against Western brands imported through parallel import channels in Russia. He also stated that Russian consumers prefer familiar domestic vodka at a reasonable price over significantly more expensive imported brands.
Tsarskaya has also bolstered its international presence, doubling shipments to China and continuing to supply CIS countries and Israel. Additionally, Ladoga has expanded into new markets, including Mongolia, the Dominican Republic, South Korea, Turkey, Thailand, the Philippines, Vietnam, South Africa and Mauritius. Tsarskaya vodka is now sold in over 30 countries worldwide.
The third spot in The Millionaire’s Club ranking went to the Ukrainian vodka brand Nemiroff, which saw sales grow by 42%. Belarusian company Minsk Kristall Group's Stolichnaya and Indian company Radico Khaitan's Magic Moments took the fourth and fifth spots respectively with sales increases of 30% and 29%.
Speaking to Russian newspaper Vedomosti, Stanislav Kaufman, owner of the brand agency Kaufman, pointed out that Russian vodka producers face relatively small sales volumes abroad compared to foreign companies. The main export markets were traditionally the US, UK and Germany, but sanctions following Russia’s invasion of Ukraine now prevent sales to these regions. As a result, producers are now focusing on Asia, Africa and the CIS. However, Kaufman points out that countries like China, India and the Arab nations lack a strong vodka-drinking culture, making it difficult to increase sales there. According to CIFRA, Russian vodka exports have fallen threefold over the past two years (2022 and 2023) from 60mn litres down to 20mn litres.
