Russian Standard vodka owned by Rustam Tariko has moved its UK distribution to Whyte & Mackay after its contract expired last year. This has given an opportunity for Russia’s Zelona Marka (Green Mark) brand to have a second chance at the UK market as Grant’s concluded a distribution contract with Russian Alcohol Group and its owner Polish CDEC to promote Green Mark, vintage Kauffman Vodka as well as Polish Zubrowka in Great Britain.

The British and Russian Parliaments need to act urgently if an export market for quality UK beers is ever to re-emerge. International award-winning Master Brewer Tim O’Rourke told Westminster MPs, at a Parliamentary tasting of a unique British strong beer, ‘Russian Imperial Stout’, on 9 November 2011: “We need action now by both the British and Russian Parliaments. In the UK, the Government has increased duty on strong beers by a swingeing 25%, in the last Budget. In Russia, the Duma (Parliament) is proposing legislation to prohibit the import of high-alcohol beers.

“Unless steps are taken to reduce the effect of these measures, the market for these beers will be stifled at birth. We need to help our exports, not stop them”.

A vigorous de-rating of the retail sector has created an opportunity to buy growth stories at a fraction of their fair value. The aggregated capitalization of our covered companies is now at 1Q10 levels (despite 55% higher EBITDA generation), which represents an average 34% discount to EM peers on 2012E EV/EBITDA. We believe that fears over the deterioration of sector growth and profitability are overplayed, and the sector should resume steady expansion from 1Q12, once the high-base effect is exhausted. We reduce our target prices by 4-15% to reflect higher COE and lower 2011 revenues, but reiterate our BUY recommendation on all our covered stocks.

The Great Baltic Adventure, the first cargo of Russian Imperial Stout to be shipped to St.Petersburg in more than 100 years, was given a rousing Launch Send-off at Royal Arsenal, Woolwich, London, last Saturday (14 May 2011). At a ceremony held at ‘The Dial Arch’ pub, Royal Arsenal, the Deputy Mayor of Greenwich, Cllr. Jim Gillman, wished the voyage every success and a safe journey.