Decline in sales of potent liquor-infused sweets in Russia
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In the world of alcohol, the first half of 2025 has seen some notable changes. According to data from Nielsen, the sales of various spirits have experienced significant fluctuations compared to the same period last year.
Vodka sales have dipped by 3.5%, while gin and rum have seen a surge, with increases of 12.7% and 17.1% respectively. Aperitifs have also taken a slight hit, with a decrease of 3.3%. However, it's not all bad news for the spirits industry, as overall alcohol with an alcohol content above 9% was consumed 1.3% less.
One spirit that has faced a more pronounced decline is Cognac. Despite a slight increase of 2.4% in the first half of 2025, Cognac sales have seen a significant decrease of 9.8% in the first seven months of the year. This decline is primarily attributed to shifting consumer preferences and geopolitical trade tensions.
Younger consumers are moving away from Cognac towards more affordable and mixable beverages, seeking value for money and personalization. Geopolitical and trade issues, such as tariffs and anti-dumping measures, have also restricted access to key duty-free markets, notably in China, hurting sales. These factors have led to substantial drops in Cognac sales volumes in countries like the US and China.
Interestingly, the increase in prices of Cognac is a major reason for its decreasing popularity. This, combined with the changing preference patterns, has contributed to the decline in sales of Cognac and brandy.
On a positive note, other spirits have seen an increase in sales. Tequila sales have risen by 8.8%, while whiskey sales have increased by 9.4%. Liqueurs, infusions, and other similar products have also seen a significant increase of 15.3%. Purchases of rum, gin, bitter, and whiskey have risen by 17.1%, 12.7%, 11%, and 9.4% respectively.
Brandy sales have also taken a hit, with a decrease of 9.6%, and vodka sales have dipped by 4.3%. Liqueur sales, however, have seen a slight increase of 5.5%.
Yuri Yudich, head of the analytical group "Alcoexpert," has cited the increase in prices and the change in preference patterns as the main reasons for the decline in sales of cognac and brandy.
In addition, restrictions on sales and the closure of stores in some regions could have provoked a decrease in legal consumption. Data from Rosalkogoltabakkontrol shows a decrease in the sales of brandy and other alcoholic beverages, and an increase in the sales of liqueurs and vodka products.
As we move forward, it will be interesting to see how these trends continue to evolve and how the alcohol industry adapts to these changes.
- The finance sector might observe a potential impact on brands specializing in the spirits industry, particularly those producing Cognac and brandy, due to the decreasing sales and changing consumer preferences.
- In the banking-and-insurance sector, there could be a growth in businesses or investment opportunities in the spirits market, given the increasing sales for other categories like tequila, whiskey, liqueurs, and rum.
