In the first five months of 2023, Georgian wine imports to Russia have increased and Georgia became the number one importer. This was reported by the Russian publication Kommersant based on customs data. Italy is in second place.
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According to Kommersant, in January-May, 24.15 million liters of wine entered Russia from Georgia, and 23.36 million liters from Italy. Annual imports from the two countries increased by 63% and 31%, respectively.
“As a result, Georgia’s share in wine supply to Russia reached 19.1%, and Italy’s – 18.5%. In this period, annual import of wine from Spain increased by 25%, to 20.46 million liters, from France – by 23%, to 10.04 million liters, from Portugal – by 69%, to 9.61 million liters,” Kommersant writes.
In the first quarter of this year, Georgia was in second place among wine suppliers to Russia. Aleksander Lipilin, executive director of the wine trade company Fort, says that the increase in imports from Georgia started at the end of 2022, which is connected to the absence of payment and logistical problems.
According to him, the increase in the share of Georgian wine is mainly down to the low to medium-price segment of retail store imports. Leonid Rafailov, the general director of one of the leading companies in the alcohol market, explains that the chains can enter direct talks with wine producers and can offer consumers minimum prices at the counter.
According to those involved in the field, Georgian wine is characterized by low price volatility and is subject to zero import tax, while, for example, importing wine from Italy to Russia is hindered by payment difficulties, fluctuations in the exchange rate, and higher prices in certain positions.
According to Kommersant, Georgian wines compete with Russian wines in the middle price category in retail trade. One of the big winemakers says that the general dominance of imported wine creates a problem for local producers.
Natural grape wines are the largest export goods of Georgia that currently account for 8.4% of the total local exports. According to the preliminary data of the National Statistics Office, in January-May 2023, wine with a total worth of USD 103,252,300 was exported, which is USD 23,718,200 more than in the same period of the previous year.
Georgian did not cut off trade and economic relations with Russia after the start of the war in Ukraine. In the first five months of this year, Russia has been the largest export partner of Georgia (219.3 million USD), followed by China, Turkey, Bulgaria, Armenia, and Azerbaijan.
