Beluga expects exports to drop 10%-20% in 2022

MOSCOW. April 7 (Interfax) - Beluga Group , one of Russia's largest alcohol producers, expects exports to fall 10%-20% in 2022, although it boosted exports 17.2% in Q1.

"However, we expect the growth rate to slow down in 2022. This is due, firstly, to a decline in sales in a number of European markets because of the temporary refusal by certain retail outlets to continue cooperation, and secondly, to the embargo imposed by the U.S.," Alexander Mechetin, CEO of Beluga Group, was quoted as saying in a statement released by the company.

At the same time, the U.S. accumulated a significant stock of products at the beginning of the year, and therefore, the company does not expect a significant decline in performance, he said.

"By the end of the year, we expect exports to amount to 80%-90% of the 2021 figures, as the company is exploring new promising countries for partnership, as well as recording growth in the first quarter in the Middle East, Asia, and Latin America. At the same time, the decline in travel abroad will lead to an increase in domestic tourism and consumption, also expected to help offset possible losses on exports," Mechetin said.

Beluga's total sales increased 25.1% in Q1 2022 to a record 3.95 million decaliters amid growth in demand in an uncertain situation and consumers stocking up.