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Georgian Wine Export Revenues Dramatically Reduced

The economic crisis in the main export countries and accordingly reduction in purchasing power of consumers had the greatest impact on wine and spirits exports, as expected.

In January wine and brandy export revenues decreased dramatically, while chacha sales went up by 34% compared to  early 2014.

The Russian Federation is the most important economic actor in the major export markets for Georgian wine both in the post-Soviet countries, Central Asia and Eastern Europe. Thus, the crisis faced by Russia will significantly affect the economic environment the Georgian wine export highway runs through.

In January 2015 Georgian wine exports  to the Russian Federation significantly reduced (87%,  by 2 354 334 bottles), to Azerbaijan – (70%, 31 716 bottles), Ukraine- (52%, 346 454 bottles), Estonia-(49% , 27 300 bottles), Kazakhstan- (17%, 39 138 bottles). Insignificant, but the decline in sales is observed in Poland and Latvia, however, these markets, as far as possible, maintain  stability along with Lithuania and Uzbekistan, where January exports increased minimally.

By contrast, sales increased significantly in East Asia – China and Japan, where the government takes special measures aimed at  diversification of export market.