Better pricing policy for Georgian wines
10 April, 2014
Better pricing policy for Georgian wines
A better pricing and logistic policy is required to raise competitiveness of Georgian wines on the international market. High grape prices and a monopoly in the Georgian logistic sector are two crucial factors that jack up the prices, Theo Jansen, CBI [Ministry of Foreign Affairs of the Netherland] Wine Expert who promotes Georgian wines in Netherland, indicated. While attending Prowein 2014 on 23-25 March, one of the major wine fairs in the wine industry held every year in Dusseldorf, Mr.
Jansen elaborated his opinion about Georgian wines and its marketing strategy in his exclusive interview with Georgian Journal.
Q: Georgian wines have been attending Prowein for 14 years already. Could you tell us what development you see for Georgian wines and where it is going to?
A: I was attracted to Georgian wines since 1992-93 because Georgia is the cradle of wine and it has unique wines, great varieties. These days there are so many good wines at cheaper prices that the main difficulty for Georgia is to find its niche. They can only find it by keeping its uniqueness, its unique varietals, and by making the wines a little bit softer, easier to drink but they should never leave and lose the identity of grape varietals - that’s why the consumer will buy Georgian wines, because they are a different new taste. And there is also still a market for more advanced wine drinkers who pay more and are looking for something new. These are target groups for Georgian wines. This really provides an opportunity especially in advanced countries. Qvevri wines nowadays have created a lot of interest with wine writers but they are more expensive.
Q: How much more expensive are they?
A: Double to five-six times more expensive than a good normal wine, but the reach is limited in volumes. However that [Qvevri] might be a way to communicate with the market, that Georgia is the country with a unique wine history. For that purpose I loved the Qvevri story, but there is a need to regulate it more. Nowadays you can have Qvevri wines that have only been in the Qvevri for one month and wines that have been in the Qvevri for a year. [Therefore] people do not know what to expect of Qvevri, while prices are higher and nobody knows why. That is really a relevant factor for Georgia to take into account. They should realize that, in spite of all these positive factors of being different and the oldest country of wine-making, there are so many good wines in the world and they cannot keep increasing their prices. [Georgian wine companies] pay 3-4 times more than everyone else for grapes. It is already a problem. And if you want to sell to the world you have to be realistic. Another issue is lowering the costs by lowering transport costs. It is more expensive to ship from Georgia to the EU than from China or South Africa. For China you pay one-third of the container while for Georgia it is 3-4 times more, because supply from Georgia is less and there is a problem on inland transportation: it is more expensive to transport from Kakheti to Poti than a full container from South Africa to Holland.
Q: What’s your explanation for this problem?
A: I think there a kind of monopoly was created by shipping companies in Georgia. And that is very bad for the sale of Georgian wine.
Q: Where do you see target markets for Georgian wines?
A: I think the focus should be on the EU, on Poland, because it is still a growing market and has big sympathy for Georgia. They even have a TV station that says “please buy Georgian wine, help them.” The actual political situation is a desire to help you.
Q: Which one of the Georgian wines is the most popular?
A: The most popular and the one that has the biggest potential is Saperavi. It can make for a very high quality wine. I promote Kisi very much because its taste is easy and acceptable, and its name is easy to pronounce. I say “a kiss from Georgia.” But you need more varieties, especially in red wines. With white wines I have no problem, I show a lot of varieties but with reds I have some problems. That’s why I push to have new varieties especially in the red sector. Imagine, if I had a tasting, and in the end I would have to say that all these red wines are Saperavi while I talk of 500 red wine options [which make up the Georgian pool of varieties]; how foolish would I look then?
Print
Other Stories
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.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
23.09.2018
24.09.2018
USD
1
USD
2.6216
2.6216
EUR
1
EUR
3.0854
3.0854
GBP
1
GBP
3.4584
3.4584
RUB
100
RUB
3.9340
3.9340
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
USD
1
USD
2.6216
EUR
1
EUR
3.0854
GBP
1
GBP
3.4584
RUB
100
RUB
3.9340