Russian stores are almost out of Bacardi and Grey Goose.

A significant portion of Bacardi Limited's products, the only multinational spirits company officially continuing operations in the country since the start of the military operation in Ukraine , are now almost completely gone from Russian retail chains . This includes Bacardi rum, Grey Goose vodka, Bombay Sapphire gin, and other beverages, according to an RBC correspondent who examined the product ranges of X5 Group stores (Chizhik, Pyaterochka, Perekrestok), Magnit, Krasnoe & Beloe, and the online storefronts of the WineStyle liquor chain.

X5 Group confirmed to RBC that Bacardi Ltd. has stopped supplying the relevant brands. The group has also stopped exporting Aberfeldy whiskey to Russia, the retailer clarified, as well as Patron tequila, an RBC source in the ALCOHOL industry added. Bacardi did not respond to RBC's request for comment.

Bacardi stopped supplying several brands to Russia in early 2023, but before that, it had built up significant stockpiles, primarily for food service businesses, AST CEO Leonid Rafailov told RBC. Now, he explains, these stockpiles are running low, and some importers are bringing in Bacardi products through parallel imports. However, according to the AST CEO, these deliveries are sporadic and don't correspond to the volumes Bacardi once supplied.

Bacardi was first registered in 1862, when Facundo Bacardi, a Catalan entrepreneur who had moved to Cuba, acquired a rum distillery in Santiago de Cuba and, together with his partner, developed a recipe for a radically new Caribbean rum. The drink became so successful that Bacardi became known as the "King of Rum." After the victory of the Cuban Revolution in 1959, Bacardi's assets in Cuba were seized by Fidel Castro's government, forcing the Bacardi family to flee the country. The company continued operations in the United States , Mexico, Puerto Rico, Spain, and the Bahamas.

In 1965, the company moved to Bermuda, and in 1992, Bacardi Limited was incorporated there, comprising five operating divisions: Bacardi International Limited in Bermuda itself, Bacardi & Company Limited in the Bahamas, Bacardi Corporation in Puerto Rico, Bacardi Imports, Inc. in the United States, and Bacardi y Compañía SA de CV in Mexico. A year later, in 1993, a sixth division, Martini & Rossi in Italy, joined Bacardi Limited. The group exists in this form to this day.

According to the British magazine Drinks International, Bacardi rum and Grey Goose vodka are the best-selling brands in the world in their categories.

Currently, Bacardi continues to EXPORT to Russia primarily its Italian portfolio—vermouths and sparkling wines under the Martini brand, says Rafailov. This was confirmed by X5 Group. Rafailov believes this could be explained by Italy's more lenient attitude toward Russia compared to the United States, which has completely banned alcohol imports to the country, the expert believes. Although the rum is produced in Puerto Rico and the tequila in Mexico, these brands are owned by Bacardi's American division, which controlled the corresponding shipments to Russia, Rafailov explains.

A number of Bacardi-owned products remain present on the Russian market, including Dewar's and William Lawson's whiskeys, as well as Oakheart rum. The latter two, however, are bottled in Russia by Novabev Group (formerly Beluga Group) and Tula Distillery 1911, respectively.

Against the backdrop of the cessation of supplies of the group's key brands, its Russian division, Bacardi Rus LLC, reduced its net profit in 2023 to 1.5 billion rubles, which, according to financial statements, was the worst result since 2019. Back then, profit amounted to 630.3 million rubles, after which it steadily increased in all subsequent years (for comparison, the company's net profit in 2022 was 4.6 billion rubles). Bacardi Rus LLC's revenue in 2023, however, increased by 16.9% compared to the previous year, reaching 38.1 billion rubles. The company's inventory at the end of 2023 amounted to 6.4 billion rubles, while at the beginning of the year, it was only 2.1 billion rubles. The purchase price of goods sold also increased, from 20.3 billion rubles in 2022 to 27.6 billion rubles. In total, expenses for ordinary activities of Bacardi Rus increased by almost 10 billion (to 36.2 billion rubles).

An RBC source in the retail market reported that Bacardi raised prices by 10% at the end of 2023. The Verny chain also faced rising shipping prices for the multinational company's liquor , announcing in March of this year that it would completely discontinue its Bacardi product line. The retailer attributed this to a "discriminatory" difference in purchasing prices compared to other retailers—in 2023, this difference was nearly 10%. At the end of the year, Bacardi warned Verny that it would raise prices by another 17%, or the liquor supplier threatened to completely stop shipping, the chain reported. Furthermore, Verny complained of regular interruptions in the foreign company's supply of required quantities.

After the start of the military operation in Ukraine, almost all of the world's largest alcohol producers left the Russian alcohol market: Diageo (brands Johnnie Walker, Guinness, Smirnoff, Baileys and others), Pernod Ricard (Chivas, Jameson, Ballantine's, Beefeater, Olmeca, Absolut), Brown-Forman (Jack Daniel's), Beam Suntory (Jim Beam) and a number of others.

Bacardi was not among them, despite the company condemning the actions of the Russian authorities. The company decided to donate $1 million to the Red Cross and Mercy Corps, halt exports to Russia, and freeze advertising investments in the local market, according to its statement. Later, the reference to halting exports and freezing advertising spending was removed from the publication. And in August 2023, The Wall Street Journal reported, citing data collected by the platform.EXPORT Genius customs data from the Russian government shows that Bacardi Rus imported $169 million worth of products in the year ending June 30. The group's Russian division's net profit for 2022 was a record 4.65 billion rubles.

In September 2022, the Ministry of Industry and Trade proposed allowing parallel imports —that is, the importation of certain alcoholic beverages into the country without the copyright holder's permission, including Jack Daniel's, Jim Beam, Johnnie Walker, and Chivas whiskey. Russian alcohol producers opposed this measure, but the ministry nevertheless adopted the corresponding decision in November 2022. Currently, the list of alcoholic products permitted for parallel import includes some of the discontinued Bacardi brands, such as Aberfeldy and Patron.

With Western alcohol producers leaving, despite parallel imports being permitted, many Russian companies have decided to try to fill the vacated niches and begin producing their own products in the rum, whiskey, and gin categories. However, imports remain popular: according to the Center for Research of Federal and Regional Alcohol Markets (CIFRRA), rum imports last year fell slightly compared to 2021, reaching 6.7 million decaliters (1.5 million dal) versus 7.2 million dal, and even increased slightly compared to 2022 (6.3 million dal). Imports of foreign gin in 2023 reached 2.1 million dal. They were higher in 2021 (2.7 million dal), but increased compared to 2022 (1.8 million dal), CIFRRA DIRECTOR Vadim Drobiz told RBC.