Georgian wine prices go up
12 December, 2013
Georgian wine prices go up
Prices on Georgian wine are expected to increase after the New Year by 20-40%. The price on Khvanchkara may go up by 70%. Wine companies attribute the price hike to high prices on grapes this year, and problems caused by state subsidies; the government cites increased demand. However, neither wine producers nor government predict a drop in sales.
In spite of the abundant grape harvest this year, prices were kept exceptionally high, fluctuating between GEL1-2 per kilo, depending on the
grape type. Last year the price was just 30-40 tetri per kilo. So, it means prices increased by 60-100% this year. Wine experts blame the successful opening of the Russian market, as well as the state subsidies. In 2012, some 22 million bottles of wine were exported. But this figure was exceeded in September this year, and since June, when the market was opened in Russia, about 7 million bottles have gone there.
The state subsidized the price of grapes, paying 25-40 tetri per kilogram of purchased grapes to growers. Sector pundits predicted the price hike immediately, and warned that it might affect the competitive power of Georgian wines on the international market.
But neither wine producers nor government expect any drop in sales on either domestic or export markets. 20-30% is not too high an increase, they say; and Khvanchkara is produced in such small quantities that it will sell out at any price. But Georgian wines are in a higher price category now.
“The price is regulated by supply and demand, and this price structure is normal,” Levan Davitashvili, Head of the Wine Agency of Georgia, operated by the Ministry of Agriculture, said in an interview with Georgian Journal. “It was defined by high demand for grapes and not by any internal structure [of price-making]. No wine producer will increase prices so much to lose markets, and besides, we are in a higher price category now since the wine quality has improved.”
Shalva Khetsuriani, President of the Association of Georgian Sommeliers and owner of Khetsuariani Cellar, believes the price hike is more likely a result of increasing demand on the Russian market.
“The price increases have come not because the quality of Georgian wines has increased but due to huge demand for them on the Russian market. Russian distributors ask for more and more wines, and pay beforehand,” he said. But Georgian wine really has a price problem, Khetsuriani believes, and the reason is not the state subsidies. The problem is the small difference between prices on low and high class wines.
“In Georgia prices between low and high class wines fluctuate by just 10-20%, whereas on the international market the similar price difference is fivefold higher. For example, I know of Georgian wines where the difference between high and low classes is 50 cents, while the difference in quality is five-fold,” Khetsuriani said.
According to him, wine prices must increase based on quality; and the classification of vineyards and appellations is crucial to this end. “The prices are similar on all grapes in Georgia today - that is not acceptable. Once the consumer learns the difference between wines produced from vineyards of renowned appellations and ordinary vineyards, the price will be settled automatically,” Khetsuriani concluded.
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30