New data released by Russia’s federal tax agency shows that Bacardi’s Russian division, Bacardi Rus LLC, saw its profits skyrocket to almost $50 million in 2022, which was more than three times its profits from 2021. Officially the company made 4.7 billion rubles ($48.4 million) in 2022, compared to 1.5 billion rubles ($15.44 million) of profit in 2021.
Following the beginning of the Russian military operation in Ukraine, Bacardi International issued a statement on its website, in which it said it would donate $1 million to the Red Cross and Mercy Corps, to “support humanitarian efforts” in Ukraine. The statement also announced the company would be ceasing all exports to Russia, and it would freeze its advertising spending in the nation. Since then, however, that portion of the statement was deleted from the company’s website.
The Wall Street Journal examined an analysis of Russian customs data by Export Genius, a trade-data specialist, which showed that Bacardi had delivered roughly $169 million worth of alcoholic drinks to its Russian division in the 12 months to June 30th of 2023. The drink products delivered included Bacardi’s signature Bacardi rum, Grey Goose vodka, Bombay Sapphire gin, Oakheart rum, Dewar’s Scotch whisky, Patron tequila, and Martini vermouth, among other drinks. The company is also continuing to advertise for new employees in the country.
According to the head of the WineRetail information center, Aleksandr Stavtsev, Bacardi is continuing to ship its products to the Russian market in “fairly decent volumes.”
In an interview with RIA Novosti news agency, he said, “So they continue, let’s say, to work on the development of the Russian market together with domestic retail companies.”
Although a number of Western alcohol companies chose to exit the Russian market due to Ukraine-related sanctions many simply scaled back their Russian operations, but continued to operate there on a smaller scale.
The maker of Aperol and Campari liquors, Davide Campari-Milano, a competitor to Bacardi, had said in April of 2022 that it had, “reduced the business to the bare minimum,” however it continues to operate in the country.
Threats of a boycott in Sweden forced French Group Pernod Ricard to cease exports of its products to Russia, however it has stated it intends to continue to maintain a small presence in the country, so it may quickly resume shipments, “when the circumstances will be okay.”
Even Western alcohol brands which have exited the country completely continue to see their products available in Russia through parallel imports, where importers locate brands in other countries, and utilize third parties there to purchase the products for shipment to Russia, without the permission of the brand owners.
