Garmonia ends distribution of Russky Alkogol products

2010-08-17

Garmonia, one of the five largest Russian wholesalers of alcohol, has decided to terminate its cooperation with Russky Alkogol (RA), a group of alcohol producers. Garmonia was the main distributor of RA products, selling up to 10% of the company’s output. It also served as the exclusive distributor of Russky Alkogol in several Russian provinces. As such, Russky Alkogol expects that the termination of the agreement will have a negative impact on sales until new distributors for the company’s goods can be found.
Garmonia will continue to sell those RA products that it had already purchased. The distribution agreement will come to a permanent end in October 2010.
This development follows a similar termination of agreement between Russky Alkogol and another of its distributors. In June 2010, a distribution agreement with Septima was also terminated. According to market rumours, both distributors have ended their commercial agreements with RA due to pressure being exerted on them by the state-owned alcohol producer Rosspirtprom, with whom both distributors have recently established commercial relations.