Andalusian oil and wine show their quality at Prodexpo, the largest professional meeting in the Russian market for the food and beverage sector

Extenda detects opportunities in Russia

It is expected that both sectors will invoice up to 7.000 million euros in the country in 2025.

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Extenda-Andalusia Export and Foreign Investment has organized the group participation of the Andalusian agri-food industry in Prodexpo 2022, the largest meeting of professionals organized in Russia for the food and beverage sector, and which this year was held between February 7 and 11 at the exhibition center Moscow Expocentre.

 

This twenty-ninth edition has welcomed signatures from the community of the wine and olive sector, who have been able to show the attending public their excellent characteristics, ingredients and techniques of their extensive culinary tradition along with their products, following the opportunities detected for these industries in the Russian market. , which will grow in the coming years and will invoice, according to forecasts, up to 7.000 million euros in 2025.

 

According to Extenda data, Russia presents a stable economy after having left behind the economic recession suffered during 2020 due to the coronavirus crisis, when it decreased by 3%, reaching an increase in GDP of around 2021% in 4,3. Furthermore, it is expected that for the next two years it will continue to grow around 3%. This good macroeconomic environment that Russia enjoys, presents direct opportunities for the olive oil industry, which is perceived as 'premium' product for the Russian consumer, to which is added that this country does not have local production of liquid gold and depends entirely on imports. The forecasts managed by Extenda indicate that olive oil consumption will grow until reaching a turnover of up to 445 million euros in 2025, also boosted by the rise in prices.

 

For its part, the wine sector can find in Russia a market in full development due to the absence of the custom of wine consumption, which is already incipient in large cities and which contrasts with other European countries with saturated and mature wine markets. In the short term, market opportunities are found for wineries that offer wines with good value for money, elegant and with personality; that with the passage of time and the sophistication of the market will not be enough, having to dedicate efforts to an attractive presentation and a product with a lot of indigenous character and history. Thus, the wine sector is expected to maintain its pace and generate a turnover of more than 6.570 million in 2025.

 

El CEO of Extenda, Arturo Bernal, has highlighted “the strength of the Andalusian brand in these two sectors that present great opportunities for the Russian market, such as the liquid gold of our community and the Andalusian wine industry, both sectors with important designations of origin that are an example in our earth and for the world.”

 

Furthermore, Bernal has valued participation in Prodexpo for the community's firms, since "with this action Extenda opens the door not only to Russia, a country that will have a turnover of up to 7.000 billion euros in wines and oil in 2025, but to the Eurasian countries around them, finding in this fair a turning point in their international trade relations and an area of ​​more than 200 million potential consumers.”

 

As a novelty this year, Extenda offers at its stand a joint space for networking for Andalusian companies. This new model pursues not only the objective of promoting the agri-food industry but also the Andalusia brand as a whole. Thus, it seeks to contribute to improving the profitability of the agri-food sector, bringing together producers and buyers from the main countries in the world; add value, increasing knowledge of the differential characteristics and healthy attributes of the different products of our region; and open new markets and consolidate existing ones.

 

Arturo Bernal has highlighted “the strength of the Andalusia brand in these two sectors that present great opportunities for the Russian market, such as the liquid gold of our community and the Andalusian wine industry.”

 

Prodexpo 2022: a door to Russia and the Euro-Asian countries

 

With more than twenty years of tradition, Russia has held Prodexpo, the most important meeting of the food sector in Russia, which is also positioned among the ten most relevant food fairs in the world. Buyers from federal and local networks who are strategic clients meet at Prodexpo from the food sector of Russia and the countries of the Eurasian Union, and representatives of HORECA-restaurants, bars and cafes.

 

The magnitude of the event is evident through the figures for 2022, an edition that has hosted representation from up to 30 agri-food subsectors with more than 2.660 exhibitors from 73 countries, which have been visited by up to 69.000 visitors from 115 countries. In addition, during this year the participation of more than 120 Russian and international retail chains has been recorded.

 

For Prodexpo 2022 visitors, among other advantages, there is the opportunity to find new suppliers and importers. Thus, manufacturers plan to use the event to launch up to 14% of new products and commercial brands at the fair. Here you can find any food and close important business deals.

 

Wine consumption as a new habit

 

According to Extenda analyses, the wine market in Russia will grow over the next few years, which is an opportunity in itself that does not exist in other countries with saturated and mature wine markets. This is due to the long absence of a wine culture, which is now incipient in large cities.

 

The recent creation of the customs union of Russia, Belarus and Kazakhstan It is not yet known with certainty whether it will allow the creation of a unified market for wine and alcoholic beverages. However, currently some brands have begun to register the declaration of conformity in one of the three countries for marketing in any of them. Even so, the trade in alcoholic beverages is an activity subject to licensing and the rules that regulate it have not yet been harmonized according to principles homogeneous in the three countries. Once this homogenization process is completed, the opportunities will be even broader.

 

In the short term, Andalusian wine may find opportunities in Russia for wineries that offer wines with good value for money, elegant and with personality. However, in the long term and as the market consolidates and the level of sophistication increases, good quality-price will not be enough, but it will become essential to have an attractive presentation and a product with history and indigenous character.