What Challenges Do Georgian Wine Exporters Face? - TBC Capital
Natia Taktakishvili
04.04.22 12:00
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The Russia-Ukraine war will have a significant impact on Georgian wine exports, as 56% of Georgian wine exports accounted for Russia, while 10% - for Ukraine.
Irina Kvakhadze, head of Research at TBC Capital, considered the challenges that Georgian wine exporters will face this year.
“The first and foremost challenge is diversification. To leave a particular market and find new markets is a difficult task for winemakers in the short term, so there will be some difficulties here. On the other hand, there is a difficulty of payment.
It should also be noted that when we talk about diversification, Georgian wine producers will not be in the same condition they have been before the war, because supply is growing in alternative markets. The competition is on the rise. As export relations are complicated for Georgia, so it is for other countries," - explains the head of TBC Capital's research service.
According to TBC Capital, Russia is contributing the most to the export, but consumes the cheapest wine. The average export price of Georgian wine to Russia was USD 2.65 in 2021, which is lower compared to the price offered on new target markets.
