4 July 2019

X5 and Abrau-Durso to develop Russkaya Loza brand

Moscow, 4 July 2019 – X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), and Abrau-Durso Group of Companies, one of Russia’s largest wine producers, agreed to develop the Russkaya Loza brand by establishing a JV for trademark management. A memorandum of intent to this effect was signed by Igor Shekhterman, CEO of X5, and Pavel Titov, President of Abrau-Durso Group of Companies.

Under the arrangement, X5 will become the exclusive seller of the brand. Six of Russkaya Loza’s still wines are already available in stores, priced up to RUB 300 per bottle. They include red and white, dry and semi-sweet, blended and varietal wines created specifically for X5. An important element of the partnership is the desire to support the development of Russian winemaking. To that end, the partners plan to expand the brand’s portfolio by adding new products with a particular focus on using Abrau-Durso’s expertise and production capacities and own vineyards for higher price segments.

"We focus on developing strategic partnerships with suppliers so that we can offer a unique assortment to our customers. We join forces with market leaders to be able to make an exclusive value proposition offering great value for money in the natural wine category," said Igor Shekhterman, CEO of X5 Retail Group.

"Creating this joint venture is a logical continuation of the productive cooperation between two leaders in their respective industries. We are confident that thanks to our partnership, consumers will have more opportunities to purchase high-quality wine at reasonable prices," commented Pavel Titov, President of Abrau-Durso Group of Companies.​