Georgian wine producer company “Askaneli” reports a significant decline in exports to Russia, citing higher excise duties as the main reason for falling sales. According to company director Irakli Uglava, it remains extremely difficult to replace the Russian market with alternative destinations.
Speaking on BMGTV, Uglava said that “Askaneli” recorded a 15–17% decrease in total exports this year.
“Official statistics show a 16% decrease in wine exports, which coincides with a 17% decline in sales in Russia during the first six months of the year. In April last year, excise duties increased in Russia, and our partners built up stocks in advance, later gradually raising retail prices. This has directly affected demand,” Uglava explained.
Russia remains Georgia’s largest wine market, making it difficult for producers to offset declining sales there.
“It is very difficult to replace this, because Russia is the largest market for Georgian wine. We are trying, of course, to be more active in other markets. Growth in China is significant this year, but it cannot yet compensate for the loss of the Russian market,” Uglava said.
According to Uglava, the Russian excise tax increases also impacted international competitors, including Italian and Spanish wines, which faced even higher duties. As a result, many Western producers were forced to scale back in Russia, redirecting their products to European and American markets, which heightened competition there.
“Competition has increased significantly in other markets. It is very difficult to compete with European or American wines, and this makes it harder for Georgian producers to gain ground. The decline in Russian sales has already become a trend,” Uglava noted.
