Wine exporters entered new markets, but dependency on Russia and other post-Soviet countries remains significant, - according to the data from Galt & Taggart.
The report reads, that exposure to new export markets (the US, UK, China, Japan, Germany, Poland and Baltic states) increased in recent years, accounting for 21.5% of total exports in 1H21 in value terms, up from 10.9% in 2013.
However, Russia still absorbed 58.1% of Georgia’s total wine exports in 2017-20. This is a result of developed trading networks and benefits from widespread popularity of Georgian wine in Russia (removing additional marketing costs). Considering the painful effects of Russian 2006 embargo and unpredictability of this market, we believe that diversification to other markets should remain a number one priority for Georgian wine companies in medium to long term.
