Magnum Magazine Digest / Дайджест журнала Magnum

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By Wine Intelligence. Digest 2007

The reference on the Russian wine market


magnum MAGAZINE PRESENTS

Оrganizers: Andrey Grigoriev Igor Serdyuk

the moscow wine festival

Sales director: Ekaterina Timofeeva advert@magnum.su +7 (495) 755-8788

TRADE SHOW & FAIR JUNE 2008

Ask your questions: fest@magnum.su +7 (495) 967-3455

TOP WINES FOR THE 2008 SUMMER SEASON TASTINGS, SALES AT EXCLUSIVE PRICES, EXPERT RECOMMENDATIONS


As any sophisticated wine connoisseur knows, magnum is not just a double-bottle – it is in fact a different quality. Bottled in magnum, a serious wine has deeper flavor and longer ageing potential. Back in 2005, a group of Russian wine writers, united around two leading specialized publications, Vinnaya Karta and Pod Gradusom, decided to create a new magazine for wine consumers. Consolidating two resources of creative force allowed them to reach a real new quality of a product as well as the new, higher, level of impact. Thus the magazine was called Magnum. Magnum is designed to deliver a message from a wine specialist to a final consumer. Its goal is to build up a community of wine enthusiasts in Russia, creating exciting readership for the advanced customers, and at the same time inviting new customers to a fascinating wine world. For two years already, Magnum has been successful in fulfilling this mission. With the printrun of 8 000 copies, it has become the most reliable regular source of information for those who are in wine. It has organized Magnum Readers Club with its public tasting sessions, and Moscow Wine Press Club, which reveals the “Results of the Wine Year in Russia” each December. The first Moscow Wine Festival was launched by Magnum in June 2007. This exciting and unprecedented tasting event, supported by the leading wine importers as well as by some interprofessional unions of wine producers, attracted more than 3 000 visitors in two days. Magnum is also famous for consulting wine companies, both producers and distributors. Magnum’s service division is called Wine Intelligence, and the demand for its consulting is steadily growing with the growth of the market. Russia is a challenging but very much a promising market, and we are looking forward to welcoming you on it! Andrey Grigoriev, Publisher – grig@magnum.su Igor Serdyuk, Editor-in-chief – serdyuk@magnum.su Ekaterina Timofeeva, Sales director – advert@magnum.su


MARKET_____IMPORTER

If you are a wine producer looking at emerging markets, and if you really want your business to be successful, you should try coming to Russia and finding yourself good importer. With the attractive, steady growth of wine consumption, the modern history of the Russian wine market is a story of survival by those who once dared to import quality wines into what was supposed to be vodka country. Only a few of the strongest have survived, and those few are still making the wine world go round in spite of the industry crisis. Text by Igor Serdyuk

Wanted: Importer There are 126 importers for all of the wines and spirits sold in Russia, but just 16 of them control 65% share of total volume. A trend towards consolidation among importers was initially set in motion by the government, which was looking for a way to place stricter controls on the wine and spirits market. New legal regulations pushed the market towards further consolidation – it is now becoming just too expensive and bureaucratically complicated to be an importer. Since the new law was imposed, several importers and wine merchants decided to close or sell their businesses. While major importers have their own distribution systems in Moscow and St. Petersburg, in other Russian cities they prefer to work with local distributors. Normally, each of the regional markets is divided between two or three companies, though sometimes a single wine and spirits wholesaler enjoys a local monopoly. This has led to a paradox in which imported wines and spirits are noticeably overpriced in regional markets where there is a noticeably lower level of purchasing power than in Moscow or St. Petersburg. Very few Moscow-based companies have thus far tried to overcome local protectionism and establish their own distribution in regions. Rusimport, in particular, is an exception to this rule. This firm was aggressive enough to offer regional markets a complete range of its brands with the advantage of lower prices.

The first is a group of large international companies like Diageo, Pernod Ricard and Bacardi Martini, which have representative offices in Moscow and work with a selection of large wholesalers like Rotor House, AST and others. (These wholesalers themselves are starting to import some brands.) Moet-Hennessy has recently launched a joint venture with its former exclusive importer, Whitehall, as the latter continues to import and distribute a large portfolio of wines and spirits. The second category is a group of major importers who have the lion’s share of the premium wine segment, but sometimes combine premium quality products with faster moving low-end wines or with affordable spirits (mainly vodka). Some of them, like DP-Trade, MBG, United Distributors or Veld-21, have an elite image, whereas others, like Vinikom, Alianta or Rusimport, work in a broader range. Then there are a certain number of niche importers, like Vintage-M, Vinoteka or Palais Royal, who are quite comfortable supplying certain restaurants or private clients with boutique wines and spirits. Importers establish advertising and marketing budgets financed both by their own margins (which go up to 100 %) and by funding from their suppliers. A large portion of these budgets is not spent on what we would usually call marketing or advertising. These are the rules of the game: importers and distrib-

A trend towards consolidation among importers was initially set in motion by the government. New legal regulations pushed the market towards further consolidation – it is now becoming just too expensive and bureaucratically complicated to be an importer Ekaterinburg, Krasnoyarsk, Novosibirsk, Kazan, Rostov, Krasnodar, Samara, and Nizhny Novgorod are all promising and developing markets, but Moscow still accounts for about half of the premium wine and spirits consumption in the country. Import market operators could be formally divided into several categories.

utors increasingly have to pay for so-called “entry tickets”, meaning the right to place their bottles on supermarket shelves or to include them in restaurants’ wine lists. Very few retail chains have their own specialists who focus on actually choosing products for their assortment, preferring to have “special deals” with suppliers.

Unfortunately, the on-trade segment works in the same way. In theory, consumers should vote for the best, thoroughly thought-out, wine lists, and ignore the corrupt ones. But legal restrictions on wine and spirits advertising make consumer education more difficult and time consuming. According to the law, advertising for any alcoholic drink (with the exception of beer) is prohibited anywhere but in the places where those drinks are being produced or sold. This law does afford market operators the opportunity to publish their ads in specialized publications distributed mainly in shops and restaurants. But at the same time, the law limits distribution of these young publications, which do not yet have a critical impact on consumer habits. Some of the glossy magazines with larger print runs ignore the restrictions and accept ads from spirits brands in one or two issues per year. In this case, they include the amount for which they will be fined into the price of the ad, and take the risk of loosing their publishing license. Under these conditions, tasting sessions remain the main format for promoting premium wines and spirits in Russia. Importers use it quite often, but most tastings are reserved for a limited number of professional sommeliers, cavists, wine merchants and journalists. Although the importers organize tasting events for their best private clients as well, a major wine event for consumers has not yet been created. The First Moscow Wine Festival, with the ambition of attracting a few thousand wine lovers in two days, was scheduled for last summer, but was postponed until June 2007 because of the crisis caused by the new excise stickers. French wine producers are historically the most active on the promotional side. Last autumn, they could not legally import bottles for presentations because of the shortage of excise tax stickers – but they used diplomatic channels and organized several events inside the French Embassy in Moscow. Roussillon was followed by Burgundy, Bordeaux Grands Crus and traditional Beaujolais Nouveau events.


MAGNUM DIGEST June 2007_____3

The dynamic Italian wine industry is also trying to promote its products in Russia. Impressive two-day presentations were organized last spring in Moscow and St. Petersburg by ICE and Veronafiere, as part of the Vinitaly promotional tour. Spain is so far a newer participant, but a series of Brandy de Jerez promotions across Russia as well as the Spanish Wine and Food show in Moscow were a very good start. The California Wine Institute ran an important professional tasting at the US Ambassador’s Residence in Moscow. The same format was tested by the ProChile organization but, according to importers, it did not have a lot of relevance because the market for Chilean wine was already saturated. The Moscow Wine Fair was cancelled in 2006, failing to overcome numerous technical and logistical difficulties. Some of the major importers have successfully organized large tasting events based on their suppliers’ products. For example, MBG recently held an Italian wine presentation, and Veld-21 did the second “Eau de Vie” festival, inviting distilleries from Armagnac, Cognac, Calvados, Scotland and Japan, along with some French and Spanish wineries. With the exception of some niche companies, importers try to divide their assortment into the on-trade and off-trade segments. Off-trade sells the biggest share of wines and spirits in Russia (more than 70 per cent, according to some sources), but bars and restaurants are steadily increasing their share, especially in the premium and super-premium categories. Logically, the higher the price of the product, the better it sells in restaurants. Some importers reserve their best brands for on-trade only. But very few of them can resist the temptation… So if you see Sassicaia on a supermarket shelf, don’t be surprised. However, the truth is that supermarkets differ in Russia. Even inside a single chain, like Perekrestok or 7th Continent, there are better located and more expensive stores with margins up to 70–80 per cent, along with inexpensive stores with affordable 30–50 per cent margins and a corresponding range of goods. Some of the supermarkets, like Azbuka Vkusa, Megacenter Italia or Stockman, are targeting the wealthy and more sophisticated consumer, whereas some, like Kopeika, are following a discounter model. A newer fashionable category of retailers – luxury grocery stores – is represented by the Globus Gourmet chain, which sells brands like Hediard, Fauchon, Fortnum & Mason as well as some local specialties. One of the most remarkable phenomena in the on-trade sector is the success of the first Moscow wine bars, which are positioned in a booming mid-price segment. However, more expensive gastronomic restaurants and fashionable lounge bars

remain rather dynamic and continue to be an attractive point of sale and good showcase for fine wines. Some of the major wine boutique chains are affiliated with importers, such as Whitehall (Kauffman Collection), DP-Trade (Magnum, Vinum, etc.), Veld 21 (Vinoteca Paradis), Simple (Grand Cru) and MBG (Intendant). Interestingly, independent wine retailers such as Kollektsiya Vin (“Wine Collection”) or Aromatny Mir (“Aromatic World”) have also started to import some products, considering exclusivity as a marketing advantage. Despite very high prices for rent, launching a wine boutique is a good investment. If it is well-managed, it begins to pay back the initial investment in about a year. But importers who own these shops consider them not only as business units, but also as promotional spaces and sites for marketing activities. A wine boutique attracts consumers’ attention and thus brings value to the image of a wine importer and merchant. In fact, several importers have started to think about rebranding their companies, realizing that their old names did not carry a message for the consumer. Whitehall company owner Mark Kauffman was the first to create a new brand – Kauffman Private Collection – putting a new logo on his wine boutiques and on the selection of fine wine and spirits in the company’s portfolio. Wine and spirits importers are rethinking not only their marketing messages, but also their portfolios, trying to replace banned Moldovan and Georgian wines with affordable values from Southern Russia or other countries. Russian wineries have not yet recovered from a series of dramatic cataclysms: Gorbachev’s prohibition in the mid-eighties and the hyperinflation of the early nineties. They await new equipment as well as a new generation of winemakers with a qualitydriven mentality. After all, it is Russian wine consumers who vote for quality. Local production of wine (the lower end of the segment) decreased by 18% in 2005, while imports (mid-range and high end) grew by 25%. The very cold winter of 2005–2006 ruined some of the vineyards, so the decrease in Russian wine production may continue in 2006. According to official statistics, the local production of wine in Russia is about 305 million liters – but a significant part that is imported bulk wine. Official imports are 380 million liters, but that figure is likely to be underestimated. The value of imported wine and spirits grew more than 35% and reached $1.3 billion in 2005. Imported wine made up about 41% of this volume. Before 2006, the biggest volume of wines – more than 50% – was imported to Russia from Moldova. The Georgian segment accounted for 8–10%, close to the level of French imports.

VALERY FILATOV, CEO, UNITED DISTRIBUTORS

Valery Filatov started his business as one of the most successful grocery wholesalers, but he soon realized that wine deserves a special business division. He has built up a collection of fine wines and spirits for the on-trade sector and highend retailers. His business has suffered from the consequences of the new regulatory system, just like everybody else, but strategically he is convinced that consolidation will make the market healthier and more transparent. “Wine is becoming a less attractive idea for occasional adventurers,” says Valery.“That will help the consumer to feel more comfortable and more confident about his choices.”

ALEXANDER SHARIKOV, CEO,VINIKOM

Having created a diverse portfolio of internationally-renowned brands (Louis Roederer, Mouton Cadet, Freixenet,Tenute di Toscana, etc.) Alexander Sharikov has led his company from the purist image of a refined importer to the uneasy path of wine producer.Vinikom owns a winery near Anapa, on the Black Sea coast, and the Russkaya Loza (“Russian

Vine”) brand, which became a national bestseller in 2005. Alexander believes that he has found real terroirs where he can produce world-class wine, and he has plans to build a new modern winery on the vineyards he planted 5 years ago. “Russia never had enough of its own vineyards to provide wine lovers with the necessary amount of decent wine,” Sharikov says. “So the Russian wine market will inevitably be dominated by imports. But if Russia joins the WTO, it would probably kill the Russian wine industry because so far it cannot compete with imports.”

ARMEN GRISHKIAN, CEO,ALIANTA GROUP

Armen Grishkian was one of those who started to reconsider his company’s portfolio about three years ago, adding premium brands to cheap Moldovan wines. And that was quite timely – when Moldovan and Georgian wines were banned in 2006, he could quickly replace them with value wines from Europe and the New World countries. He is now thinking about a new concept for a wine retail chain which would be based on a thorough selection of friendly-priced wines. “Russian consumers should not be afraid of wine,” says Armen.“It is our challenge to introduce wine to a consumer who is curious enough, but not yet decisive enough, to identify himself as a wine lover.”


ANALISIS_____MARKET IN RUSSIA

After the fall of the socialist system, Russia opened up to many new luxury goods, including wine. The past fifteen years witnessed the emergence and development of a highly competitive wine market with a set of key players, thousands of wine labels and changing consumption patterns. Analysis by Eleonora Scholes

Russian Wine Market Moscow and St. Petersburg have the highest concentration of premium wines in their markets, reflecting the purchasing habits of a new class of wealthy consumers

DMITRY PINSKY, DP-TRADE CEO, ON THE HISTORY OFTHE RUSSIAN FINE WINE MARKET

Before 1991, no private entity could import anything. Exportimport operations were possible only for state companies. By 1994, when we came into wine business, there were a few companies importing mostly big brands. In the fine wine sector, we counted three companies as our future competitors. They all were almost illegal, since import taxes were very high. Excise taxes, for instance, were 46.5% on the declared invoice value. In August 1994, the authorities changed the system for import taxation and introduced more specific import duties, contrary to“ad valorum“ system before. Import duties were derived from the percentage of pure alcohol, thus making them

negligible for still wines. Excise tax became more specific, too, and was as small as the import duty. However, beginning in 1996, the “ad valorum“ system was brought back, and the import duty was increased to 20%.The excise tax remained small. The next crucial point came in 1998 with Russian financial crisis. The ruble was devalued against the US Dollar by a factor of four. The crisis greatly distorted the development of the wine market. Demand fell by 3–4 times.The market remained very low until almost 2001.After 2001 and up until mid-2006, it was steadily developing. The effect of the recent introduction of new excise stamps and a unified monitoring computer system (EGAIS) is already wellknown.We as DP-Trade were among the very first on the market to overcome the crisis completely. I would link the general forecast for the Russian fine wine market with world oil prices and Russian real estate prices.They, in turn, are connected to the global economy and to the 2008 elections in Russia.Any forecasts are therefore unpredictable.

The Russian wine market remains a curiosity to many observers, largely due to the lack of up-to-date information and accepted stereotypes of Russians drinking nothing but vodka. In absolute figures, vodka and spirits account for two thirds of alcoholic beverages consumed in Russia, with another quarter going for beer and about 10% for wine. Yet Russia is far from being the nation that drinks the most. In 2003, its alcohol consumption reached 9.3 liters per capita, placing the country 19th in the world and leaving it behind France, Ireland and the Czech Republic. Russia’s stable economic situation over the past few years is leading to a new reality. Better lifestyles and higher disposable incomes are reversing the trend towards lower consumption of spirits and leading to a better appreciation of wine. The beer market, in the meantime, is approaching its saturation point – its growth has fallen from 10% to 5% in the past year and is set to slower even further. Some thirty years ago, Russians were drinking about 17 liters of wine per capita. Gorbachev’s anti-alcohol campaign of 1985 and a sharp drop in personal income due to further economic turmoil made the wine market nearly redundant. In the mid-1990s wine consumption plummeted to 2.5 liters. Vodka and spirits were seen as ‘better value’ alcoholic drinks. The slow recovery of the wine market started after 1998 economic cri-

sis. Current consumption is estimated at 6 liters per capita, with higher figures for wealthier cities such as Moscow, St. Petersburg, Ekaterinburg, Kazan and Novosibirsk. Currently, wine is the fastest growing segment of the Russian alcohol market. It is estimated at 730 mln. liters per year with a steady annual increase of 8% by volume and 15% by value. The Russian Winegrowers and Winemakers’ Association estimates the total wine market at about 2 billion US dollars. Despite Russia’s image as a non-wine producing country, it has vineyards in the southwest between the Black Sea and Caspian Sea. Last year, they accounted for over 190 million liters of wine. Most Russian bottled wine, however, is blended with imported bulk products. Moldova, France and Spain have been key suppliers, but in light of the current ban on Moldovan products the focus is shifting to Spain, new European suppliers and Central Asia. New World countries, notably Chile and Argentina, are losing out in this segment in favor of shipping bottled wine. Imports of bulk wine increased by nearly 5% to 128 mln. liters last year. The total volume of Russian bottled wine is 320 mln. liters per year. It sells mainly in the lower price bracket. A major success story lies in imported packaged wines. This segment continues to enjoy the most dynamic development in terms of volume and value over the past 15 years, except for a 2-year period following Russia’s 1998 economic crisis. In 2005, the


MAGNUM DIGEST June 2007_____5

PER CAPITA CONSUMPTION (1961 = 100%)

COUNTRIES-SUPPLIERS OF BULK WINE Country

Source: Source: Kachalov & Partners Agency

Moldova Spain France Uzbekistan Argentina Italy Ukraine Hungary Chile Australia Others Total

2004, mln. l

2005, mln. l

Change, %

55.11 18.96 22.52 1.48 15.23 — 5.03 0.02 1.39 2.10 0.16 122.01

41.81 37.98 23.01 11.37 11.14 1.51 0.93 0.09 0.07 — — 127.92

-24.1% +200.3% +2.1% +768% -26.8% -81.5% +450% -95% — — +4.8%

WINE MARKET BY PRICE POINTS Premium — more than 300 roubles (9 euros) Medium – 100–300 roubles (3–9 euros) Low – up to 100 roubles

Source: SUAR (The National Union of Wine and Spirits Producers and Distributors)

7% 37% 56%

HOW DOES AN IMPORTER ARRIVE AT A LISTED PRICE FOR A BOTTLE OF WINE

IMPORTED PACKAGED STILL WINES, BY COUNTRY Source: Business Analytics Country

MARKET OF IMPORTED PACKAGED WINES Type of wine

2004, mln. l

Still Sparkling Aromatised (vermouths) Total

299.27 11.73 15.33 326.33

2005, mln. l

Change, %

376.5 12.25 17.13 405.88

+25.8% +4.4% +11.7% +24.4%

Source: SUAR (The National Union of Wine and Spirits Producers and Distributors)

total volume of imported packaged wine totaled over 400 mln. liters with an impressive 25% increase from the previous year. Moldova, Bulgaria, Georgia and France have led the table of wine imports for a number of years. The picture, however, will dramatically change after 2006 as Moldovan and Georgian wines were banned on the grounds of health safety earlier this year. Natural still wines dominate the market for imported packaged wine, accounting for 93 percent. Until 2006, Moldova was the absolute leader and supplied up to 70% of all bottled wine. Cheap production, historic ties and favorable economic conditions have long made Moldova the prime source for the lower end of the Russian wine market. After the introduction of a ban on Moldovan wines, other importing countries jumped at the opportunity, but there are limitations. New producers will have to compete at a highly price sensitive level of 50–100 rubles (1.5–3 euros) which doesn’t leave much room for quality offers. There are good prospects for Russian and foreign wine bottlers with production facilities inside the country, as well as less costly wines from Eastern Europe, table wines from France, Spain and Italy and basic ranges from Chile and Argentina. Imported bottled wines have firmly established themselves in the medium and premium price segments. The former features inexpensive wines from European and New World producers, while the range of the lat-

Moldova Bulgaria Georgia France Spain Ukraine Germany Argentina Italy Chile Others

2004, %

2005, %

58.90 12.30 7.80 5.20 3.70 2.50 2.20 1.60 1.60 1.50 2.80

51.30 16.60 8.90 5.80 3.50 2.80 2.20 2.30 1.80 1.90 3.00

Ex-cellar price plus transportation costs are declared at customs where a 20% import duty, varying excise rates and 18% VAT must be paid. Each label must be certified to comply with Russian wine regulations.An importer must also possess a valid license that allows him to trade in alcohol imports. A single license costs up to 100,000 rubles (3,000 euros), with a long-term general license

costing 1.5 mln. rubles (44,500 euros). Importer’s margins are generally dictated by the type of wine. Products for the low end of the market have a higher turnover, thus the margin stays lower at 10–30%. Wholesalers add another 10% to the importer’s price. Pricing for premium wines is different. Importer’s mark-up is 25–35%, sometimes up to 50%. Shops add another 50%, while a restaurant can multiply the wholesale price by 2–3 times for expensive bottles, and up to 6 times for entry-level wines.

Russia’s stable economic situation over the past few years is leading to a new reality. Better lifestyles and higher disposable incomes are reversing the trend towards lower consumption of spirits and leading to a better appreciation of wine ter is as good as in any other serious wine market. It thrives with names and labels of the top world producers, from Bordeaux first growths to New World cults. The category of sparkling wine takes a significant share of the Russian market, but its main success comes from charmat wines produced and bottled in Russia. Imported bulk products are also often blended in. Average prices on the shelves are 100–150 rubles (3–4.5 euros). This makes Russian sparklers an affordable and highly popular drink. Imported bottled sparkling wines take a small share of the overall sparkling category with figures around 9% over the past few years. In 2005, Italy was the second largest importer after Moldova, largely thanks to Asti wines with their good visibility on the market and promotional support. Ukraine comes third with quality production in the Crimea, while France ranks fourth place. French sales in Russia include all of the leading champagne brands and a number of cremants. Russian consumers drink as much as 70% red wine. White wine makes up only about a quarter of the market, with the rest going to

rose. One particularity in this country is that people still opt for off-dry or semisweet flavors, even for red wines. Dry wines dominate only in premium and ultra-premium categories, reflecting a more sophisticated drinking culture of this wealthy consumer group. A recent study on wine sales in Russia, conducted by research agency Business Analytics, reveals that over 50% of sales come from the lowest segment of the market. The niche of premium and ultra-premium products remains small at only 7% of the total market. Although a country with large population of 143 mln. people, actual income per capita is low. On average, Russians earn 2,610 USD (2,088 euros) per year (World Bank). The situation is different in Moscow, St. Petersburg and other key cities, where drinkers with much higher disposable incomes spend more on fine wines. Moscow and St. Petersburg have the highest concentration of premium wines in their markets, reflecting the purchasing habits of a new class of wealthy consumers. As long as world oil prices remain high, the Russian fine wine market will continue to grow.


TEST______VODKA

Search for the right vodka Being traditional vodka-drinking country, Russia does not have a regular rating of vodka brands. Trying to fill the niche, Magnum has organized a blind tasting of the leading premium vodkas represented on the Russian market. Imported products proved to be strong competitors to the genuine Russian vodka.

92

92

91

91

Arsenich Original

Tigoda Lux

Yuri Dolgoruky

Wyborowa Premium

Russia

Russia

Russia

Poland

Boris Smirnov Trade House

Veld 21

Vremena Goda

Armyansky Cognac

The mild aroma pleasantly conveys the scent of toasted dark bread. It has a very mild and clean taste, without aftertaste. This vodka leaves a satisfying impression.

A very clean aroma, with a remarkable vodka freshness. The taste has a moderate burn, but for many this burning is the essence of vodka’s character.

Very mild aroma, with nuances that recall the taste of fresh birch sap. The taste is light, pleasant, with organic vodka pepper.

91

90

90

Wyborowa Single Estate

Roberto Cavalli Ultra Premium

Poland Armyansky Cognac

An interesting, light, vodka, in halftones. The taste is juicy, reasonably pungent with a with a hint of vodka character but without burning.

90

Myagkov Premium

Italy

Kauffman Collection Selected Russian Vodka Zhestkaya (‘Hard’)

Vasco International

Russia

Overline Concern

Ukraine

Whitehall Center Pleasant aromas tinged with water from the spring snowmelt. The taste is very mild, but the aftertaste, however, is clearly marked by a light pepperyness.

A clean, light vodka scent. Soft and elegant taste. The women in our tasting commission especially enjoyed this vodka.

Interesting, fresh and “juicy” aroma with a hint of bread. Tastes masculine, powerful and ”pungent”. A model worthy of praise for its ”irrepressible expression and masculine dominance”.

Very clean fragrance. In the taste, and especially in the aftertaste, there is a noticeable bit of sharpness, which, incidentally, is part of vodka’s character.

Scale: 81–85 points – Bronze Medal, 85–90 – Silver Medal, 90–95 – Gold Medal, 95–100 – Grand Prix. The full list of rated vodka is published in Magnum #1/07


MAGNUM DIGEST June 2007_____7

Purity of the grain spirit Tigoda was the most unexpected newcomer at the top of Magnum’s annual vodka rating, scoring 92 points out of 100 in the blind tasting, and gaining sympathies of the whole panel. Intrigued by the bright performance of a an unknown brand, our reporters went to inspect the production facilities located in the north-western part of Russia, some 200 kilometers from St. Petersburg. “If you want to control the quality of your product, you normally take care about the raw material, don’t you?,” says Ludmila Vybornova, the chief technologist of Tigoda distillery. She explains how much time she spends on the selection of grain for her production, but she does not consider it a waste of time. “We use only the healthiest rye and have the finest spirit,” she says. Tigoda is one of the few Russian vodka brands, which have a privilege of having their own rectification distilleries. The great majority of vodka factories buy 96 per cent spirit, dissolve it with water, filter it and bottle it under their labels. But not only Tigoda produces spirit of a guaranteed quality for its own needs, but it chooses uniquely the very best lots, selected by a panel of tasters. All the rest is sold to other vodka producers. Another essential secret is the special breed of yeast used for fermentation of the rye mash. Grown by a research institute in Moscow, the yeast is then adapted to the production conditions at the distillery. The recipe is strictly kept by a limited number of technologists in charge. After the distillation is fulfilled, and the rectificated selected by the tasting jury, the spirit is blended with the conditioned artesian water in the proportion of 40 to 60. This blend goes to the 18 charcoal filter columns to slowly obtain the fine purity of the famous Russian vodka flavor.

Spitit for Tigoda is usually distilled from Rye grain

Above: Tigoda river gave its name to the vodka brand

Left: Quality of the packaging is double-controlled at Tigoda distillery

Special breed of yeast is one of the strictly kept secrets


EVENTS_____WINE FESTIVAL

The First Moscow Wine Festival attracts thousands of guests The first Moscow Wine Festival took place on June 8–9 at T-Modul exhibition & shopping mall in central Moscow, gathering 17 major Russian wine and spirits importers and attracting more than 3000 visitors in two days. Wine professionals and connoisseurs attended master-classes and seminars, entertaining sessions and interactive talk shows. The unprecedented tasting event was also supported by the inter-professional unions of wine producers from Bordeaux and Jerez, which presented their special projects at the show. The festival program included presentation of the “100 Favorite Bordeaux” rating by Magnum and the CIVB. In the frame of the wine show,

Magnum organized the first conference on health and wine therapy. The conference, followed by a press briefing, was attended by the specialists in narcology, oncology and other areas of clinical medicine. Scientists declared their readiness to launch a series of researches to prove the positive effect of moderate drinking on different forms of pathology. After that, the wine therapists consulted the attendees of the festival. Two charity auctions finalized the program of each of the festival’s two days. One featured the rare wines and spirits from the Moscow importers and collectors. Another one presented the hedonistic paintings of the Soviet period.


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