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Supply Chain

Russia's Dixy Group Starts Direct Import Of Alcohol To Stores

Russian retailer Dixy Group announced recently that it has started to import alcohol directly to its shelves, focusing first on wine products.

In early March, the first run of five Spanish and French wine SKUs appeared in stores.

The term direct import refers to a supply contract that is made without involving any intermediaries, with Dixy Group taking on the logistics operations in this case.

This allows the retailer to cut product cost by 15%, on average, it said.

The chain plans to up its direct import of alcoholic products by 20% at the end of this year.

Denis Vasiliev, commercial director of Dixy Group, explained the decision, “Wines are among the most in-demand categories of alcoholic products, they account for approximately 30% of alcohol turnover.

"Besides, the category is brand independent: customers’ purchase decisions are guided by price-quality tradeoff.

"Incidentally, we are convinced that the share of Russian wines in our sales is going to remain at the same level and is not going to be materially affected by direct import."

The company will prioritise direct imports of still and sparking own-brand wines, planning to double Dixy's share of private label wine brands by the end of 2017.

Approximately half of the total import volume of products in the vegetables and fruit category are also supplied by direct import.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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