Bacardi Rus Bacardi

Performance indicators

2023: Revenue growth by 17% to RUB 38.1 billion

In 2023, Bacardi Rus revenue amounted to 38.1 billion rubles, which is 17% more than a year ago. The net profit of the Russian rum producer Bacardi during this time decreased from 4.65 billion to 1.5 billion rubles. Such data are provided in the reporting under RAS, disclosed in mid-April 2024.

According to Interfax, citing materials from Bakardi Rus LLC, in 2023 the company's gross profit decreased to 10.5 billion rubles from 12.3 billion rubles in 2022, and sales profit to 1.9 billion rubles from 5.5 billion rubles.

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The volume of the company's inventories at the end of 2023 was measured at 6.4 billion rubles, while at the beginning of the same year there were 2.1 billion rubles. The purchase value of the goods sold also increased from 20.3 billion rubles in 2022 to 27.6 billion rubles. In total, expenses on ordinary activities of Bakardi Rus increased by almost 10 billion (to 36.2 billion rubles), the company said.

RBC notes that by April 2024, Bacardi Limited is the only transnational alcohol company officially continuing to work on the Russian market after the start of the Russian military operation in Ukraine. It's about Bacardi rum, Grey Goose vodka, Bombay Sapphire gin and other drinks, among others

At the same time, Bacardi stopped supplying a number of brands to Russia at the beginning of 2023, but before that significant reserves were formed, mainly directed to catering enterprises, AST General Director Leonid Rafailov told the publication. According to him, by mid-April 2024, stocks are coming to an end, some importers are importing Bacardi products as part of parallel imports. But such deliveries are chaotic and do not correspond to the volumes provided by Bacardi, the head of AST added.^[1]

2022: Profit growth triples - up to 4.7 billion rubles

Bacardi International's revenue in Russia in 2022 amounted to 32.6 billion rubles against 30.1 billion rubles a year earlier. The company's net profit in comparison with the same periods tripled - from 1.5 billion to 4.7 billion rubles. Such data were released at the end of June 2023.

According to The Bell (recognized in Russia as a foreign agent), the financial performance of Bakardi Rus LLC, which sells alcohol in Russia and was going to leave the market, has grown significantly. Thus, the cost of the company's fixed assets soared from 57 million rubles in 2021 to 850 million rubles a year later.

Roma producer Bacardi, who promised to leave the Russian Federation, removed these statements from the site after a profit growth of 3 times in the Russian market

The increase in the company's profit is not only due to the parallel import system. After the start of the military special operation of the Russian Federation in Ukraine, Bakardi Rus received four declarations of conformity for the import of alcoholic beverages, which allow importing and issuing new consignments of goods for a long time.

Also, since February 2022, the company has registered 37 new warehouse units of goods in the register of Rosalkogolregulirovanie, including Martini wines and vermouth, Bacardi and Banks Roma, Gray Goose vodka, Bombay Sapphire gin and a number of Scotch whisky brands. Registration in such a register means that the goods have already been imported into the Russian Federation and passed customs clearance, according to the publication of the publication of June 28, 2023.

According to The Bell, Bacardi Rus makes money from William Lawson's contract whiskey bottling, which is quite profitable in terms of paying excise taxes. Immediately after the start of Russia's special operation in Ukraine, Bacardi International announced that it would stop supplying alcohol to the Russian market and would no longer invest in advertising. However, the company removed this information from its website.

The commercial expenses of Bakardi Rus, despite plans to stop the promotion, exceeded 6.7 billion rubles in 2022, which is slightly less than a year earlier 7.042 billion rubles. It is reported that by June 2023, the company continues marketing investments in both alcohol consumption and retail.^[2]

History

2023: Bacardi imported $169 million worth of alcohol into Russia after a statement about leaving the Russian market

For a 12-month period, the end of which fell on June 30, 2023, Bacardi imported alcohol into the Russian Federation for $169 million, despite the application for leaving the Russian market. This was reported in August 2023 by The Wall Street Journal (WSJ), citing data from the Federal Customs Service.

Imported items include Grey Goose vodka, Bombay Sapphire gin, Oakheart rum, Dewar's Scotch whisky, Patron tequila, Martini-branded vermouth and more. According to the publication, by August 2023, 350 people work in Bacardi in Russia in seven cities, the newspaper writes. In recent months, Bacardi management has posted job ads on LinkedIn, including a recruiting manager, a training and development coordinator and a warehouse manager, the WSJ noted.

Bacardi imported $169 million worth of alcoholic beverages to Russia, despite a letter of resignation from the Russian market

The publication also says that despite the departure of a number of Western brands from the Russian market, Bacardi managed to increase sales and profits, taking advantage of the vacated niche. The company ignored its own promises and continued to do business in Russia.

At the same time, according to the newspaper, Bacardi is not the only brand that has decided not to leave the Russian market. Thus, Davide Campari-Milano, which produces Aperol and Campari, also decided to stay in the Russian Federation.

In June 2023, the head of the WineRetail information center, Alexander Stavtsev, said that Bacardi products (Bacardi rum of the same name, Martini vermouth, Laurent-Perrier champagne, Gray Goose vodka and other brands) continue to enter the Russian market not for parallel imports, the company is working on the development of this market together with domestic retailers.^[3]

Notes