X5 Retail Group Will Create a Joint Venture with Abrau Durso
OREANDA-NEWS. The largest Russian retailer X5 Retail Group (Pyaterochka, Perekrestok and Karusel networks) agreed to set up a joint venture (JV) with the leader of the Russian market of sparkling wines - the Abrau Durso group. This is stated in a joint statement of the companies received by RBC. As follows from the agreement, the joint venture will be engaged in the development of the Russian Vine wine brand, which since 2016 has belonged to Abrau-Durso. According to Rospatent, this brand was acquired by an alcoholic holding in May 2018, previously owned by Eurostyle.
Questions about how the joint venture will be arranged, the investments of the parties and whether the retailer will become a co-owner of the production site, while they are in the process of discussion, clarify the company. So far, the parties have only agreed that the products will be exclusively sold in the stores of X5 Retail Group. Today on the shelves are already represented six names of still wines “Russian vine” in the price segment up to 300 rubles. In the future, companies are considering the possibility of expanding the product line of the brand, including in higher price segments. Production volumes and details of cooperation in the companies do not specify.
The cooperation will allow Abrau-Durso to ensure the loading of the plant in Sukko, Pavel Titov, the president of the group of companies, explained to the Russian media. Last year, the volume of production on it was about 7 million bottles, the maximum capacity of the enterprise is about 15 million bottles, he said. To increase production, it was decided to find partners interested in creating their own trademarks in collaboration with Abrau-Durso, Titov said. This partnership provides a guaranteed redemption of manufactured products for the implementation of a partner in their stores, he explained.
Abrau-Durso Group for 2018 increased production by 17% to 38.8 million bottles. The net profit of the holding for the reporting period increased by 29% to 1.07 billion rubles.