Russian Standard opens new distillery

Russian Standard, the premium vodka brand that has commanded a 60% share of the premium vodka market in Russia, has just opened a new $60 million distillery which will enable it to double output. The company, headed by flamboyant billionaire Roustan Toriko, is planning a major international expansion built around marketing communication extolling the brand’s Russian heritage.

The brand is currently exported to 28 markets, in partnership with The Campari Group or Remy-Cointreau in most territories. However the company anticipates that the new plant, which is based on the outskirts of St Petersburg, will enable it to increase sales in these markets and open up a slew of new opportunities. This year to date exports have increased 200%. The company has previously produced its three brands – Russian Standard Original, Platinum and Imperia – in existing distilleries.

Outlining the decision to build the new plant, Tariko explains: "We thought of buying a distillery but saw that the technology was antiquated, so we decided to build our own using all the latest technology…This will enable us to ensure total consistency." Inconsistent output has been one of the main problems for Russian vodka brands in the past. The brand will be marketed under the tagline ‘Vodka is Russian’. Tariko explains that there is already a strong link between the spirit and the nation in consumers’ minds. The aim is that this brand will engender a level of provenance in a category where heritage currently has a limited role.

© db 4th October 2006