Georgian Wine Exports Down 67%

From Feast to Famine once more…..after the best year on record for Georgian wine exports in 2014, regional economic woes have seriously hampered wine exports. Non-traditional markets like China, Japan and western Europe are picking up some of the slack, but from a very low consumption base. Hopefully a strengthening rouble will improve the situation, but a new Spring Offensive by the Russian military in Ukraine will prove debilitating to those firms depending solely on traditional markets.

Commersant - მთავარი გვერდის კატეგორიების სიახლეები

Georgian wine exports have significantly reduced in the first quarter of 2015 compared to the same period in 2014. In January-March, only 5 100 184 bottles of wine (0.75 l) have been  exported from Georgia to 25 countries which is 67% less than in the first  quarter of 2014.

The National Wine Agency explains a decrease in exports mainly by a decline   in the two largest markets of Ukraine and Russia. Due to political and economic events,  Georgian wine exports in Russia fell by 83%, in Ukraine – by 63%.

At the same time, export has increased in the strategically important markets such as  China (+ 64%), Japan (+ 194%), Canada (+ 250%), the UK (+ 130%), Estonia (+ 15%), Poland (+ 3%).

via Commersant – მთავარი გვერდის კატეგორიების სიახლეები.


2 Responses to Georgian Wine Exports Down 672

  1. Timothy Abraham says:

    Good article, It would be interesting to know what percentage of total sales each exported country has and there total wine consumption.
    With the current economic woe’s in Russia and Ukraine not ceasing in the near future I would not expect to see a reverse trend any time soon.
    Good quality product always sells and Georgian wine is some of the best wine available and ex factory prices are very competitive.
    As a product the majority of wine sold in quantity in the UK (6th largest wine consuming country in the world, circa 1.5 billion 0.75cl bottles per year) is purchased according to personal taste / price and even though as the article says these sales are from a low base line there must be some merit in investigating these countries markets and putting together a marketing strategy to increase market share.

    • Thanks Timothy, if you look at the previous article here , it will give you a good indication of the market destinations for Georgian wine. Total wine consumption for each destination market is easily found; it is likely that China’s grape wine consumption will exceed Russia’s next year.

      Both the Georgian Wine Association and the Ministry of Agriculture have been working on market entry strategies for non-traditional markets since the embargo of 2006. Of course momentum for this may wane somewhat when the giant Russian market is open and buying at record prices, but history has shown that the Russian market is unstable for both market and political reasons.

      Georgian wine is not very competitively priced at retail level abroad, compared to very reasonably priced European wine of sound quality, so it is imperative that the value of the national brand, and the indigenous grape varieties, are developed to convince consumers to spend the extra couple of pounds on the bottle of Georgian wine. Quality Saperavi produced in South Australia happily retails for USD$35 a bottle, in a country where people can’t find Georgia on the map, so it can be done. Australia and other New World countries captured markets in the 1980’s and 90’s via national branding campaigns funded by a small levy on each bottle sold. The Ministry of Finance could reverse recent excise increases on Georgian domestic wine sales and instead convert it into a revenue stream for a Wine Export Marketing Board run jointly by the Wine Association and SAMTREST.

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