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Case Title:

Russian Standard’s Global Growth Strategies

Publication Year : 2008

Authors: Bhavesh Makwana, Joel Sarosh Thadamalla

Industry: Beverages

Region:Russia

Case Code: GRS0192A

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Russian Standard, a manufacturer of Vodka founded in 1992, enjoyed leadership position in the Russian Vodka market with 60% market share. It was ranked ‘4th fastest growing premium spirits brand globally’ in 2006 by ‘Impact’ magazine. Russian Standard Vodka was exported to more than 50 countries across Europe, Asia, North and South America. In Europe, changing consumer tastes and preferences offered tremendous opportunities to Russian Standard. As part of its growth strategy, it decided to enter France’s emerging Vodka market where young drinkers were turning to Vodka. Apart from France, it also planned to enter various European markets where Vodka consumption was rising. But, established industry players like LVMH, Pernod Ricard, and Diageo provided stiff competition to Russian Standard in its objective to become the leading Vodka player in France.

Pedagogical Objectives:

  • To understand dynamics of the European alcohol beverage industry
  • To understand the growth strategies opted by Russian Standard in France’s Vodka market
  • To evaluate changing consumer tastes and preferences and its effects on the alcohol beverage industry.

Keywords : Growth Strategy; European alcohol beverage industry; Vodka; Vodka in France; Entry level strategies; Changing Consumer taste and preferences; Binge Drinker; Premium spirits; At-home beer consumption; Russian Standard Original; Scotch whisky market; Russian Standard in France; Growth Strategies Case Study; Obesity concerns; Changing lifestyles; At-home beer consumption

Contents : 
Alcoholic Beverage Market: Europe
Evolution of alcohol consumption worldwide
Beverage Sales in Western Europe 2006
Top 10 Scotch whisky markets by volume in 2005
France Beverage Sales, 2006
EU Alcohol Consumption per 9 litres cases, 2005
Russian Standard: Global Growth Plan
Alcohol consumption in Europe
Patterns of alcohol use among young people in the EU25

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