Wine companies report that domestic sales have decreased, with industry representatives linking the decline to changes in tourist flows and weaker demand from the hospitality sector. According to Shalva Kurdadze, founder of “Papris Valley,” the reduced number of Western visitors and high-spending tourists has had a direct impact on restaurant activity and, consequently, wine sales in the local market.
Kurdadze says that the company’s domestic sales have nearly halved due to the decline in the restaurant business and changes in the profile of incoming tourists. He notes that visitors are now mainly coming from Muslim countries and Russia, while the segment of tourists with higher spending power has decreased. As a result, wine producers focused on domestic sales are facing significant challenges.
“For us, domestic wine sales have fallen by about half. This is not a catastrophe because we are mainly export-oriented, but it is still a loss in revenue. Compared with three or four years ago, the decline in the local market is around 80%,” Kurdadze said. He added that the main reasons are the lower number of quality tourists entering the country and reduced purchasing power among local consumers.
The founder of “Papris Valley” says the company previously generated around 15-20% of sales from the Georgian market, but this share has now decreased. While the company continues to focus on exports, Kurdadze emphasizes that the current situation creates serious difficulties for wineries that rely primarily on domestic demand.
