TBC Capital presents a study of the wine sector

18 Feb, 2020
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TBC Capital presented a study of the wine sector. According to the research, a positive growth trend has been observed in Georgian wine exports. Tornike Kordzaia, head of research at TBC Capital, told reporters that a record wine harvest was recorded in Georgia in 2019.

"In 2019, 271,000 tons of grapes were harvested by factories as a result of vintage, which allows for increased production, especially since the demand for Georgian wine has increased. In 2019, we had a record export figure— we exported 93 million bottles, bringing a total of USD 223 million in revenue to the country. As for the research, so far it seems that one third of the production is still coming from households and we expect this share to decrease in the future. In general, we expect to increase local production by one third by 2025, which we think will further encourage exports,"— said Kordzaia.

He added, "Russia accounts for 61% of Georgia's wine exports, but this was even higher during the Russian embargo when it amounted to 77%."According to Vakhtang Butskhrikidze, CEO of TBC Bank, Georgia has great potential to increase its wine both in terms of yield and quality.

"Winemaking and viticulture is one of the most important directions for the country and therefore also a priority field for TBC. Georgia's role in this area is gradually increasing and more wine is being exported. The country has great potential to increase the volume and produce better quality wines. “This industry has had quite a successful ten years and grown by about 6.5 times in this time.  However, there is still room for growth in new markets. Diversification is in progress but there is a need for even more of this in the medium term to contribute to the stability of this industry,” said Mr. Butskhrikidze.

Zurab Margvelashvili, one of the founders of Tbilvino, also spoke to journalists and noted that "the awareness of Georgian wine is growing from year to year and therefore so too are the challenges."

"One of the most important challenges is to maintain high quality as there is a very real risk that Georgian winemaking could develop a reputation as a cheap wine-producing country.. This poses a huge risk, both economically and politically, when the country's industry depends on one market. We should not refuse to sell to Russia, but our aspiration should be for countries with strong economic and political stability. We will not have such rapid growth rates as in Russia, but any growth there is much more predictable and sustainable," said Margvelashvili.

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