Bacardi’s Russia Business Grows as Other Booze Makers Leave Country

livemint.com:

Shortly after the invasion of Ukraine, Bacardi said it had paused exports to Russia. Since then, the liquor company has sent millions of dollars of products to the country and has been advertising for new employees. Continuing to bring in brands such as Grey Goose vodka, Martini vermouth and its namesake Bacardi rum helped the family-owned company report a rise in sales and profit in Russia for last year at the same time many of the world’s biggest booze brands have beaten a costly retreat from the country.

Bacardi issued a statement soon after the war started that said it had paused exports to Russia and frozen advertising investments in the market. That language remained on its website through at least most of last year but has since been removed from the original statement. “The departure of several leading international brand owners from the alcohol market has reduced competition and has created an opportunity for the ones that have remained as well as for local companies," said Ivan Kolarov, an analyst at IWSR, a drinks-industry tracker.

Bacardi didn’t respond to requests for comment. Many Western companies said they would close operations and pull out of Russia within days of Moscow’s invasion of Ukraine in February 2022. Some companies characterized their moves as taking a moral stand, while others said Western sanctions against Russia made it hard or impossible to continue doing business.

The majority of products sold by big booze makers like Bacardi aren’t subject to sanctions. Bacardi’s Russian business, Bacardi Rus LLC, imported $169 million of products during the 12 months to June 30, according to Russian government customs data collected by Export Genius, a trade-data specialist. Products imported include