📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Russian law on bubbly no cause to pop open the 'shampanskoye', says Abrau-Durso

Published 07/06/2021, 07:47 AM
Updated 07/07/2021, 02:51 AM
© Reuters.

MOSCOW (Reuters) - Russian winemaker Abrau-Durso said a new law requiring bottles of French champagne and other foreign fizz to have a reference to "sparkling wine" on the bottle would do little to spur on sales of Russia's "shampanskoye".

President Vladimir Putin, in the latest step to protect Russian products, signed a law on Friday requiring all foreign makes of sparkling wines to use that description on the back of their bottles, although labels on the front can stay the same.

The law, which aims to protect "shampanskoye" by giving it a unique status and exempting it from the rule, has sparked outcry in France, which jealously guards "champagne" produced from its Champagne region as a unique product that differs from anything made in other French regions or the rest of the world.

Pavel Titov, the president of Abrau-Durso and co-owner with his father, told Reuters that he did not believe the new law would change the level of competition in Russia's market.

"We are in completely different price segments - imported French champagne is many times more expensive," he said.

Shares in Abrau-Durso, which last year renamed its "Russkoye shampanskoye" brand "Russkoye igristoe", or Russian sparkling, were trading up 0.5% on the day on Tuesday and at one point almost 9% up since the start of the week.

Abrau-Durso exports its wines to 24 countries but not France, Titov said.

Titov had told French media on Saturday he hoped the issue, which led some in the French champagne industry to urge producers to halt shipments to Russia, would be resolved in favour of global norms and standards.

Some French champagne producers have said they would comply with the law to keep access to Russia's market.

 

(This story fixes punctuation in the headline)

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.