Russia labeling law cuts off imports of Dom Perignon and Krug

Moet Hennessy halted shipments of Champagnes such as Dom Perignon to Russia amid new rules that now reserve the name for bubbly wines produced locally.

The decision affects other brands such as Ruinart, Moet & Chandon and Krug, and it will give the company time “to understand and study the new regulations and assess their consequences,” a representative for French owner LVMH said in an e-mail.

Russia now grants the exclusive right to use the term “Shampanskoe”—Russian for Champagne—to local sparkling wines. French Champagne producers are notoriously protective of their name, and the analysis of the new law is being carried out with others within the lobby group CIVC, according to the spokesperson.

“The Champagne region is outraged by the new Russian legislation on wine labeling,” the group said on July 5, three days after the new rules came into effect.

French producers are still allowed to use the Latin characters of Champagne on the main label. But those bottles must now also say “sparkling wine” in Cyrillic characters on the back.

The industry has asked French and European authorities to work to have the new legislation amended, according to the CIVC.

Protected Name

France’s Foreign Ministry said it is reviewing the Russian legislation, while the European Commission said it’s evaluating whether the law infringes Russia’s commitments to the World Trade Organization.

Russia ranks as the 15th-biggest market in value for French Champagne producers, according to CIVC data from last year. The market is worth about 35 million euros ($41 million), compared with more than half a billion euros for the U.S., the top export market.

Champagne producers restrict the name’s use within France, allowing it only for sparkling wines made in a limited area of the region. The name is protected in 120 countries, and Russian authorities did not inform CIVC of the upcoming change, according to the group.

Pavel Titov, president of the Black Sea winemaker Abrau-Durso PJSC, said the new rule is counter-productive and won’t benefit Russian winemakers. The products target a very different market, according to a spokesperson for another Russian winery, Fanagoria Estate.

A bottle of Abrau-Durso’s sparkling white wine costs about 700 rubles ($9.50) in Russian supermarkets, compared with roughly 5,000 rubles for a bottle of Moet & Chandon.