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Soviet Shampanskoye and Armenian cognac set to disappear

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  • Soviet Shampanskoye and Armenian cognac set to disappear

    Soviet Shampanskoye and Armenian cognac set to disappear
    by Evgeniya Chaykovskaya at 11/10/2010

    Cut price cognac is soon to be a thing of the past in Russia as the
    national alcohol watchdog tries to get tough with counterfeiters.

    And popular local fizz, Shampanskoye, could be forced to rebrand as
    Russia prepares to bow to French pressure and respect the international
    designation for sparkling wines of the Champagne region.

    Imposing a minimum price tag will wipe out the bootleggers' main selling
    point, officials hope.

    The move comes after a similar restriction on vodka, which now has a
    minimum retail price of 89 roubles for half a litre.

    Cognac will be pricier, at 190-210 roubles for 500ml, with the exact
    figure to be set in two weeks after more market research.



    Higher prices - better quality

    The measure is supposed to change the current situation when as much as
    half of cognac on the shelves is fake.

    120 million litres of the spirit are sold in Russia, but local plants
    produce about 10 million litres of cognac spirit. Even allowing for
    imports it's unlikely that more than 60 million litres are the genuine
    article, Moskovsky Komsomolets reported. Thus, every second bottle of
    cognac in Russia is a fake.

    Federal services on alcohol market regulation provide similar data: the
    wine sold in the country consists of 28 per cent made of Russian grapes,
    31 per cent - foreign and 41 per cent - counterfeit.

    But while official prices may seem to have little impact on bootleg
    distillers, the union of alcohol producers' chairman Dmitry Dobrov
    claims it has worked with vodka.

    "The minimum price allows us to effectively push the fakes out of the
    market," he told Moskovsky Komsomolets. "Despite all the fears, shops
    are following this rule en masse. This measure has worked with vodka and
    infusions, it will definitely work with cognac. The level of prices
    suggested by the officials is absolutely adequate to the lowest level of
    prices for real cognac."

    Dobrov thinks that in the end the producers of fake technique will lose
    their main advantage - their low prices.



    What's in a name?

    Another step in the fight with poor quality alcohol is to finally
    conform to international regulations, answer the complaints of the
    French winemakers and reserve the name cognac and champagne for drinks
    produced in the respective regions of France.

    The familiar Armenian cognac and Soviet champagne will from then on be
    known as brandy and sparkling wine respectively.

    The new technical regulation will also divide wine into natural wines
    and "wine drinks". The labels will have to mention the region where the
    grape comes from and detailed contents of the bottle.



    Same counterfeit with a different name?

    However, not all experts are optimistic about this set of regulations.
    "Even if the production of illegal cognac is cut down by 12-15 per cent,
    then this volume is not going to disappear, it will simply be called
    brandy and will still be sold at 150 roubles per bottle," the head of
    CIFRRA agency Vadim Drobiz told Kommersant.




    From: A. Papazian
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