Russia Faces Distillery Shortages in Cognac Production
In Russia, producers struggle with a lack of imported distilleries used to make cognac. Dmitry Chernev, head of Soyuzkonyak, highlighted the challenge to socialbites.ca.
“There is a deficit that is hard to quantify. Russian cognacs rely on about 70% imported raw materials, including cognac distillates sourced abroad. Distillates come from European countries such as France and Spain, as well as neighboring states like Armenia, Uzbekistan, and Kazakhstan. Deliveries from Europe are almost non-existent at the moment,” Chernev noted.
He pointed out issues affecting every Russian trademark. The cognac sector also contends with a shortage of Russian grapes, the essential ingredient for wine production. “Nearly all grape harvests go to Russian wine production, and Russian laws allow only Russian grapes for the raw material used in winemaking,” stated the head of the Cognac Producers Association, underscoring supply constraints.
According to Chernev, it has long been clear that resolving the logistics of distillery deliveries from France and Spain would no longer hinge on temporary fixes for Russian cognac production.
“Like wine, cognac in Russia should be made exclusively from Russian grapes. Yet until 2028, Russian cognac producers may use distillates derived from foreign grapes outside the country as a transitional measure. Operational replacements from neighboring countries such as Armenia, Georgia, and Uzbekistan are planned to fill gaps, with new deliveries possible as early as this summer,” Chernev explained.
The discussion emphasized two paths for addressing the raw material gap: expanding domestic viticulture or rapidly substituting supplies from neighboring regions whose volumes and quality meet traditional standards. If logistics for distillates from nearby countries cannot be arranged by summer, cognac production in Russia could fall by as much as 30 percent, according to Chernev.
Responses from Russia’s largest cognac producers to socialbites.ca inquiries were not obtained. A cognac industry source indicated that distilleries sourced distillates from various countries, with each producer selecting the option that best fit their needs. “Some chose European sources. For instance, Alvisa used Spanish distillates for aged and golden expressions, Alliance 1892 relied on French distillates, while Kızlyar Factory has consistently worked with domestic materials. Smaller producers obtain a mix,” the source explained.
Chernev predicted that the raw material shortage would be resolved over time as Russia expands its agricultural capacity. The country possesses extensive agricultural land suitable for grape cultivation, currently underutilized and awaiting development by seasoned growers.
The State Duma, when approached about agricultural issues, stated that the problem is not as severe as it might seem. The committee on agricultural issues noted that Russian producers can purchase distilleries in neighboring countries and emphasized that cognac is not a basic necessity like bread or water.
Elizaveta Utkina, a corporate ratings analyst, concurred that while some Russian enterprises run full-cycle production with domestic distilleries, the industry remains heavily dependent on imported components. She explained that full market rebuilding of local ingredients cannot happen overnight due to the time needed to expand vineyards and the significant scale of required volumes. Still, she noted that supplier substitution is feasible, as distillate supplies have halted only from a limited set of countries, with CIS partners remaining as potential replacements.
Attribution: information compiled from industry discussions and reporting on socialbites.ca sources.