Region-50

History

2023: First Plant Launch

In mid-June 2023, the distributor of strong alcoholic beverages in Moscow and the region "Region-50" announced the opening of a plant with a capacity of 4.9 million decaliters per year. Production is necessary for the production of vodka, gin, whiskey, cognac and tinctures under their own brands.

According to Region-50's own data, by June 2023 the company covers 80% of the client base of the Moscow region and 40% in the Central Federal District. The Region-50 portfolio includes more than 3 thousand items of various alcoholic beverages.

Region-50 announced the opening of a plant with a capacity of 4.9 million decaliters per year

According to the Kommersant newspaper, the recipes for cognac and vodka and part of the brands, as well as various equipment, were bought by the Region-50 company at the bankruptcy auction of PJSC Moscow Inter-Republican Winery. Brands include Kutuzov, Glen McClaud, English Park and Stuzha. The new plant will be led by the former top manager of Tatspirtprom Farit Shagiakhmetov. The plant will open in July 2023 in Dmitrov near Moscow.

Until 2023, Region-50 transferred the production of its own brands to third-party enterprises under a contract, but as volumes increased, Region-50 faced difficulties in terms of orders and logistics. According to the company's management, they "ran into the ceiling" in terms of placing and increasing orders, selling 1 million decaliters of alcohol per year. The presence of its own factories also allows the distributor of strong alcoholic beverages to expand the range to include the premium segment after the departure of foreign brands from Russia.

The owner of the Kaufman brand agency Stanislav Kaufman believes that Region-50 has a good portfolio of its own brands, so the company should not have problems selling its drinks. As he notes, distributors who do not have their own production are forced to depend on partners in the supply of raw materials, the payment of excise taxes, and their own platform allows them to control these issues. But, the expert emphasizes, production is a separate and risky business that requires other competencies related to production technologies..^[1]

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