Abrau-Durso Group President Pavel Titov: Goal of strategy is to move from wine brand to lifestyle brand
Pavel Titov
Photo: Press-office
The Abrau-Durso brand has become associated with more than just sparkling wines in recent years. The company has significantly expanded its portfolio by releasing other products, including strong alcohol and soft drinks. Moreover, it is expanding the Abrau-Durso resort, developing and promoting the Abrau Club lifestyle project, which is embodied in home accessories, interior items and hobbies.
President of the Abrau-Durso Group Pavel Titov told Interfax in an interview about some issues that Russian winemakers are currently facing and how they are resolving them, what they are doing to promote Russian products for export, why the Abrau-Durso brand is becoming a strategic asset for the company, and what the effect of introducing the position of chief experience officer is.
Q.: It was stated at a press conference dedicated to the 2024 results that the past year was not easy for Abrau-Durso, although the indicators say the opposite. What form did that take?
A.: Indeed, last year was not easy for us, but at the same time, it was successful, as both product sales and financial indicators grew. Let me remind you that revenue increased by 26%, net profit by 43%, EBITDA by one and a half times.
Overall, all years are not easy in some way for winemakers. The last one was, I would say, not smooth. In May, for example, excise taxes on wine surged sharply, which could not but affect the situation in the industry.
However, in fact, as a group, we do not have many unique or even unique industry problems. All the difficulties - here I am speaking already as the president of Delovaya Rossiya - are mainly associated with the protracted tight monetary policy in the country. Of course, the common difficulty is the absolute shortage of personnel, which not only winemaking is facing. Production inflation is observed in any sphere.
And this list can be continued. Therefore, in order to achieve the result that we had last year, to withstand the pressure of negative factors, we had to, we exactly had to carry out a price adjustment in 2024, probably the most noticeable in the entire history of the company.
Meanwhile, the previously adopted strategy of diversifying the product portfolio has justified itself. We have completed the process of forming strong, low-alcohol and non-alcoholic divisions.
Last year, we also expanded our range thanks to new products. In the line of classic sparkling wines Victor Dravigny, we presented Victor Dravigny Zero Dosage, which was sold out almost immediately after its release. Two new still wines have been released at the Yubileinaya winery: the Abrau Estates line has received the Group's first orange wine, the second is Femme d'Abrau wine made from Amursky Potapenko grapes with a very bright and rich peony aroma. The line of strong drinks "7" has been expanded with the grape vodka "7 Loz". In the segment of strong drinks, as promised, we have released the Cuban rum Danza del Fuego, which we produced jointly with Corporacion Cuba Ron S.A.
New non-alcoholic wines are selling successfully. And we have become a little more of a confectioner: together with the Magnit retailer, we have developed sweets with the addition of sparkling wine. Although, there were doubts, but this project, as they say, has taken off. All these areas continue to develop this year.
Q.: How can you explain such an expansion of the portfolio, especially its strong alcohol part? Experts have been saying lately, and statistics confirm this, that strong alcohol is losing ground to wines and low-alcohol products. And you have vodka, rum, and cognac. What is your goal in entering this market?
A.: Indeed, sales of strong alcohol on the market are declining, but in the case of Abrau-Durso, the strength of the brand provides a sufficient and serious advantage.
Our logic is based on analysis: the brand has significant potential that has yet to be unlocked. We view it as the most important strategic asset and use its strength for a successful start in new product categories. Although the new products themselves can be positioned and launched under their own names, the strength and recognition of Abrau-Durso remains their foundation and the driver of consumer trust.
We approach the production of strong alcohol from a position of more venture investments: something will be a success, something will not. And we are talking specifically about niche products. We try to occupy not even mini-, but micro-niches of the market. Consequently, when we launch such products, a loyal audience is formed very rapidly, perhaps, not the largest, but it is ours.
For example, vodka called "Abrau-Durso" will not compete with traditional vodkas. But vodka "7 Grains" suited the market. Grape vodka "7 Loz", which is not produced from oil cake, like, for example, such traditional wine products as chacha or grappa, was a success, too. We produce it based on wine, and this is an expensive product.
We grew by more than 10% in the strong [alcohol] portfolio in 2024.
We try to work where we have product logic. For example, cognac is obvious to us. We also see growth in this most significant and logical category for us. Of course, it is largely due to the low base, but all the same.
Q.: What are your prospects for developing the non-alcoholic sector? Will you be producing so-called dealcoholized wine?
A.: The experience of producing non-alcoholic beverages has shown that this is a truly promising trend. Consumers are interested in new types of products, new flavors. We are thinking about how to strengthen our presence in this segment through new lines of drinks.
As for dealcoholized wine, or, more simply, non-alcoholic wine, we are keeping an eye on the trend and assessing the possibilities.
Q.: What factors, along with the tough monetary policy, are affecting the company's work this year?
A.: Among the key factors are changing trends in consumer demand and preferences. Along with this, the government policy towards the industry certainly has a noticeable impact on business. The climatic features of the season and the dynamics of crop yields also have a strong influence - winemaking is closely interrelated with agricultural processes.
Q.: The latest data provided by the Russian Federal Service for Alcohol and Tobacco Oversight (Rosalkogoltabakcontrol) indicate a decline in sales of nearly all types of alcoholic beverages. How are you doing in this situation?
A.: According to research agencies, sparkling wine sales in value terms went up more than 17% in the first four months of 2025, while those of natural wines were up 0.7% compared to the same period in 2024. Whereas our sales surged 36% and 12%, respectively. We feel better than the market. This is encouraging.
Q.: This year, the company presented a nursery built at its Yubileinaya agricultural firm. Does Abrau-Durso abandon seedling imports with its opening? When can we say that a significant part of Russian winemakers use domestic planting material?
A.: Investments in this project totaled more than 175 million rubles. Now the decision made several years ago to set up a nursery allows us not only to fully provide ourselves with grape seedlings, but also to grow them for sale. In 2025, for example, there are plans to grow around 600,000 seedlings, while Abrau-Durso is in need of 300,000 pieces. It is possible to grow up to 1.25 million pieces in the future.
In essence, this is one of our main goals to grow seedlings in sufficient quantities for ourselves, as well as for sale. For us, the project is also effective from a financial point of view. Without our own nursery, we had to purchase seedlings from other companies, abroad, which is not easy now.
As of today, there are nurseries in Russia that belong to industry institutes and are used for scientific purposes, as well as nurseries within other winemaking companies. Despite the successes that have already been achieved in this area, a lot still needs to be done to fully provide Russian winemaking with the required volume of domestic planting material.
Q.: Are seedlings of autochthonous grape varieties grown in the nursery?
A.: We are working with seedlings of those varieties that are interesting to us, including autochthons. Since the nursery has opened recently, the share of autochthons is still small. Our goal is to increase it to a significant level.
The "Siberian" grape variety is currently in great demand in winemaking, but there is very little of it, as it is in short supply in Russia. We grow it and those varieties from which we do not yet make wine, but plan to. Moreover, we will grow them not only for ourselves. This is why we can talk about a strategy for developing autochthonous varieties alongside international ones.
Q.: The company planted a record 316 hectares of vineyards last year. What are your prospects for the coming years?
A.: Indeed, last year saw a record area, as the planted area increased 1.6-fold compared to 2023. As a result, out of the total of our grape-suitable lands of 6,800 hectares, 4,100 ha are now vineyards.
As for the prospects, this year we will reduce the planting area to 100-110 ha. As they say, for obvious general economic reasons. This is not enough for us, but for now, it is so.
Q.: What is the company's export program? Which areas do you consider the most promising in the current conditions?
A.: The situation is such that in recent years many enterprises, including us, had to rebuild their export strategies. It is good that we have support markets - the Commonwealth of Independent States (CIS), primarily Kazakhstan and Belarus. We have resumed work in duty free in the main hubs of international flights. There are small shipments to Europe and the Middle East.
Last year, we discovered the Indian market: we launched contract production of sparkling drinks based on fruit juice under the Tsar Collection brand there. We will continue developing production abroad, taking into account the needs of domestic markets.
We view Southeast Asia and Africa as a promising destination. We approach foreign markets very carefully, prioritizing those countries where selling is as profitable as or more profitable than in Russia.
However, of course, the main investment export destination now is China, where we began shipping products from the Tsar Collection line last year. We see that many markets are interested in the Russian royal dynasty, and who, if not us, should develop this area. After all, we are closely connected with the Russian Empire history, since the Abrau-Durso estate was founded in 1870 by decree of Alexander II.
Both sparkling and still wines are supplied to China. The batches are hundreds of thousands of bottles. Currently, there is a test period. For us in the general context, this is not much, but brand recognition is growing rapidly.
On the other hand, practice has shown that in order to develop the Chinese market, it is important to move not alone, but by uniting with other representatives of Russian winemaking. In order to successfully export, it is needed to prove to the Chinese market that Russia is a winemaking power, to form such a reputation. Consumers in China are currently focusing on more traditional producers, such as Italy, France, and the New World countries. We have to stand on a par with them in the international winemaking landscape, so it is important to join forces.
Together with other companies, as part of the strategy for promoting Russian winemaking in China, Abrau-Durso is implementing the Path of Russian Wine project. The initiative has quite a lot of potential, as we are reaching out to many wine and consumer exhibitions in China. We expect that with our investments in brand recognition, in realizing the value of Russian winemaking, China will become the most promising export market for us in a few years.
We look at the profitability of exports, because exports for the sake of exports are not needed - the overall market situation in Russia is quite good, and, probably, we do not need to strive for every market. China looks like we should definitely go there.
Q.: What is your export forecast for 2025?
A.: We used to mention the figure of two million bottles, and the target remains the same. It is a realistic figure, although it does not correspond to the company's full ambitions. In our context, taking into account production and sales, it is certainly not enough.
Q.: The company is entering the public debt market this year. Why did such a need arise?
A.: Yes, we approved a bond program for 500 million rubles, and the placement took place on July 23. Having made this decision, we are not looking for a specific amount of additional debt. This is a kind of exercise.
Q.: Does the company plan any M&A transactions in the near future? In the south, wineries are occasionally put up for sale. Is such information being considered?
A.: The enterprises themselves as a production asset are not of serious interest now. The vineyards remain the key component for the prospective development of the winery as a business entity, since only with its own grapes does it become possible to create wine and unlock its commercial potential.
A major deal was made earlier in the Abrau-Durso Group, and today the Yubileinaya winery, whose vineyards doubled our raw material base and which is already actively presenting its wines based on Russian-bred grapes.
Q.: Abrau-Durso is also a relevant tourist destination. How is the hospitality project developing? The company introduced the position of chief experience officer several years ago. Was this decision justified?
A.: In general, Abrau-Durso as a point on the map is a beautiful and attractive place. And the tourist destination is one of the key vectors of the company's development. In 2025, the Abrau-Durso resort was presented with the main Award for Best Responsible Wine Tourism Experience at the Global Wine Tourism Organization (GWTO) international summit in China. In 2024, Abrau-Durso hosted more than 600,000 tourists, and more than 200,000 of them visited excursions and tastings, that is, the plant. And last year, the implementation of a new strategy for tourists began, based on the experience economy.
Indeed, we were the first in Russia to hire a specialist for the position of chief experience officer. His responsibilities include, among other things, inventing experiences or, more precisely, creating and enriching the experience of guests who come to Abrau-Durso. As a result, we have updated our excursion program. And we are already having the result. We believe that we have chosen the right strategy.
As part of this trend, we are actively developing both retail and HoReCa, and we have acquired new facilities that we consider our pride. In essence, we can say that we have formed a gastronomic cluster. The restaurant chain "1870" has expanded, and another one has opened in Krasnodar. Currently, there are four such outlets in the region.
The first Atelier of Wine boutique in Omsk started operating under the franchise. There, jointly with Cosmos Hotel Group, a hotel operator, we implemented the first joint project - a themed room Abrau Club in the Cosmos Omsk Hotel. It is an original concept that is inspired by the atmosphere of the Abrau-Durso resort.
And if we talk about Abrau-Durso's general strategy, its goal is to move from a direct wine brand to a lifestyle brand. This is largely facilitated by the new project Abrau Club, where you can find decorative items, exclusive merchandize and capsule collections of clothing, tableware, home and hobby accessories, each of which reflects the beauty and style of Abrau-Durso.
The first Abrau Club boutique was opened in Moscow in 2023, the second in Gelendzhik in 2024. A special point on the map of the project is a new location on the shore of Lake Abrau in the center of the Abrau-Durso resort.
