As of the end of March 2020, the global COVID pandemic has hit Russia: most public places will remain closed for – at least – a week (and it sounds like a joke), people are advised to stay at home, bars and restaurants are suspended. Will this be the end of one era and the start of another one? It’s quite unlikely, although the market will certainly lose a bunch of players.<\/h3>\n

I am looking carefully at what’s happening in Moscow. Let’s start with some good things \u2014 you can tell, that some businesses are clearly benefiting from “stay home” situation: delivery services, supermarkets and shops, overall retail is a Christmas situation, like in many EU countries, people are stocking up basic foods \u2014 and some alcohol, too.<\/p>\n

The good<\/h2>\n

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• wine and spirits sales have increased in retail and wine shops overall, the situation is not exactly pre-New-Year, but very close in terms of turnovers<\/li>\n
• online shopping for wine (although legally forbidden) is on the rise. I can’t give exact numbers, but the feeling is that it’s not less than 30% and will continue like that for some time<\/li>\n
• the market will be reshaping fast \u2014 to the benefit of smaller players with less debts, bank loans and whatever obligations they might have had. Gentlemen agreements fall apart immediately in these situations \u2014 moneywise everybody’s dry.<\/li>\n<\/ul>\n

  The bad<\/h2>\n

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  • The economy is down, basically shut. This is global. But, unlike the EU\/US situations where governments are giving the money to the businesses and citizens, in Russia the goverment prefers to rob the population even more. Some “help” to the retired is laughable. The officials don’t care about anyone and this is the time to many people to open their eyes politically. Will that happen? Unfortunately most people are blind-sighted and that’s the truth<\/li>\n
  • HoReCa is closed down. Somms are sitting at homes<\/li>\n
  • Importers have to rethink the strategies, prices have risen, private departments and retail are now priorities. Price battles are inevitable: companies need to sell stocks. On the other hand, they have to be careful how not to remain with any wine, since the borders are basically closed for imports and nothing is moving. Tricky.<\/li>\n<\/ul>\n