The new Law addresses two categories of products: a broader ‘sparkling wine’ for imported drinks on one side, and ‘Russian champagne’ (that is, made in Russia only), on the other. The Law further introduces the notion of ‘cognac of Russia’, ‘a cognac, which is completely (for 100 %) made of grapes, cultivated at the territory of the Russian Federation’. For the rest of ‘cognacs’, the Law also stipulates that, after a transition period of 7 years, the name ‘cognac’ will only be used for those products that are made from distillate produced in Russia. The amendments will enter into force on the date of their publication in the Official Journal.
A letter from the Russian ‘Moët Hennessy’ branch is circulating in the media, allegedly stating that the importation of the brand’s champagne will be put on hold until the producers decide whether they are ready to rebrand their champagne to ‘sparkling wine’ for the Russian market. Policy officials, contacted by Russian media, claim that champagne producers have misunderstood the new amendments and they will not be obliged to rebrand their products, when entering the Russian market. Surprisingly, the new requirements for cognac have not attracted any right holders’ attention so far and no official statements in this regard have been done by Russian officials.
In Russia, as well as in other countries of the Eastern European region, the protection of geographical indications was only introduced in early 1990s. During the Soviet time, consumers were used to product naming such as ‘Soviet Champagne’, ‘Armenian cognac’ or ‘Portwein’, without connecting them to any particular region [this Kat herself has only recently discovered that ‘Cahors’ stands for a region in Southern France, famous for its wine production].
Since then, Georgia, Moldova, Ukraine, and more recently Armenia have all decided to rebrand certain local products, mostly cheeses and alcoholic drinks, as the consequence of their trade agreements with the European Union. In the meantime, Russia seems to be banking on the success of “Cognac of Russia”.
Update from July 4: Moët Hennessy has confirmed to Bloomberg that they will now add the 'sparkling wine' mention on their Champagne bottles for the Russian market.
Russia adopts law that shakes Cognac and Champagne importers
Reviewed by Anastasiia Kyrylenko
on
Saturday, July 03, 2021
Rating:
Reviewed by Anastasiia Kyrylenko
on
Saturday, July 03, 2021
Rating:
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if the West was not so dependent on Russia for its energy, it would certainly be easier to boycott Russian products.
ReplyDeleteIt might be difficult to export those Russian beverages in countries accepting DOP.
So, the French Champagne will have to be marketed with additional words "Sparkling Wine".
ReplyDeleteRussian producers will be able to use inside of Russia brands like "Russian champagne" and "Russian cognac".
The statement "For the rest of ‘cognacs’, the Law also stipulates that, after a transition period of 7 years, the name ‘cognac’ will only be used for those products that are made from distillate produced in Russia" seems incorrect. Maybe this is why the new requirements for cognac have not attracted any right holders’ attention so far and no official statements in this regard have been done by Russian officials.
Dear reader, thank you for your comment! Regarding the requirement for the transition period of 7 years, it is a separate provision, applicable to "cognac" in general (to any cognac sold in Russia, not only to what is defined as "Russian cognac" by the law). See Art. 4(3) of the amending law (here is the direct link to Art. 4: http://www.consultant.ru/document/cons_doc_LAW_389127/ad890e68b83c920baeae9bb9fdc9b94feb1af0ad/)
DeleteDear Anastasiia,
DeleteMany thanks for your comment.
This provision reads "В течение семи лет со дня вступления в силу настоящего Федерального закона допускается в целях производства коньяка переработка или использование коньячного дистиллята, произведенного за пределами территории Российской Федерации", i.e. "Within seven years from the date of entry into force of this Federal Law, for the purpose of cognac production, processing or use of cognac distillate produced outside the territory of the Russian Federation is allowed".
IMHO, this merely means that for producing cognac in Russia (which will have to be branded as "Russian cognac") Russian cognac distillate will have to be used after 7 years.
Apparently, this provision is to protect the investments of those producers who have already imported cognac distillate from abroad to make cognac of it in next 7 years.
IMHO, this provision does Not mean that after a transition period of 7 years, the name ‘cognac’ will only be used for those products that are made from cognac distillate produced in Russia.
Btw, could you maybe explain the geopolitical component of this news?
Thank you again for the exciting news!
Dear reader, thank you for this very interesting discussion!
DeleteI agree that the provision might be read in two senses, also in a more narrow one and only applicable to the production within the territory of Russia, that is, to "Russian cognac". Any statement in this regard, from Russian officials, would be helpful for the market to prepare for the changes, if any.
Concerning the geopolitical component of the news, it is important to bear in mind that the Law has been in preparation for some years, so it is not a direct reaction to any very recent event. Still, within the Eastern European region Russia leads a policy, which is very different from that of its neighbours (and shows to others that this different approach is possible). Even if the new law is completely within the requirements of international IP law, it might be in the interests of the EU to be a little more vocal in condemning "Russian champagne" or "Russian cognac". After Russia has passed this new Law, I now see a lot of dissatisfaction in Ukraine (and, I guess, in other countries too), with citizens, but also public officials asking themselves, why weren't we allowed to keep "cognac" or "champagne".