Posted: 2 years ago

Georgian Wine and Exports Markets

Based on the statistics of the last few years, Georgian wine exports are declining. The factors have made this contraction possible, and the governments’ marketing plan, the National Wine Agency’s deputy chairman David Tkemaladze discussed these issues for the Business Partner TV Program. 

The coronavirus outbreak in China has presumably slowed Georgian wine exports in January-February 2020; however, as a rule, export contraction has stabilized in the third month, and the field ends the reporting year in growth, David Tkemaladze noted. 

“We had the same situation in 2019, as well. The slowdown is always related to China, because China is one of the major export markets for Georgian wines. Therefore, any problem in this country may become the grounds for a bad start. Supposedly, we have the same case now. As a rule, the indicator improves in March, and the year finished with growth, traditionally”, Tkemaladze said. 

The winemaking field’s enthusiasts frequently note that wine export prices remain low, while Tkemaladze asserts that the price is adequate, and annual growth makes up 20-25 EU/US cents. 

“The price isn’t low. We are reported among the top five or four countries, together with Italy and Germany. The prices may be lower or higher compared to other countries. Naturally, Georgian wines have genuine enthusiasts and supporters, but similar statements should have some ground. Despite ranking 26th position in terms of square kilometers of vineyard worldwide, and the 21st-22nd position in terms of grape harvest, Georgia  has found a way into the club of premium and elite wines, and this is real progress, an irreversible process. Every year, the price of one liter grows by about 20-25 EU/US cents. This is a dramatic progress, and we have maintained these numbers over the past 3-4 years”, Tkemaladze said. 

The first place is not the primary ambition of the National Wine Agency. Its priority is to export highly-rated wines, diversify the markets, and grow the visibility of Georgian wines abroad. And prices will rise as a result of growing market demand after the successful implementation of this strategy, Tkemaladze explained. 

“Recently, we sent wine samples to several countries in South America. I will not specify where, in advance. Arica is an entirely new place in this regard. As for Eastern Europe, these countries remember Georgian wines and culture fondly, and we will start the process anew, because there was a certain break. 

Naturally, neither the authorities nor the Ministry has the resources to deal with all these issues. We have growth every year thanks to this continued policy”, Tkemaladze said. 

Despite the January-February slowdown, the current year will end in exports growth anyway, he added. 

“I believe we will end this year without traditional growth. Despite the genuinely negative situation after the virus’ outbreak. There was another reason in 2019, problems with domestic logistics, and it took a lot of time to analyze the situation. Nevertheless, I believe there are no grounds for complaints. We are hopeful. The field is in order, and we will end the year with growth”, Tkemaladze noted.