Georgian wine eyes USA market
02 June, 2011
Georgian wine eyes USA market

Georgian government hopes to fill the gap of Russian market in its wine export by twice bigger US market -the world’s largest wine consuming country. 

Georgian Wine and Tourism Industry Delegation of Georgian wine company owners and heads of prominent Georgian tourism companies will be visiting the US - New York/ California from May 30 to June 8 to witness the wine tourism benefits and acquire some skills. The USAID supported Economic Prosperity Initiative thinks Georgia may get bigger economic benefits

from wine tourism rather than of wine export and recommend developing this industry as soon as possible.

Whatever the prospects for wine tourism in Georgian wine industry, it obviously has to find new export markets to reimburse the loss of Russian market [Georgian wine export still lags behind the pre-Russian-embargo data by 74%] and the world’s largest wine consuming US market lures to this end.

Georgian government believes the US market, with roughly 3 billion liter wine consumption may replace Russia consuming just about 1.5 billion liters according to the US-based Wine Institute statistics.

And although the US market cuts about 3% in total Georgian wine export [unlike 90% of Russian share before embargo] some sector pundits believes it can easily replace Russia as number one importer of Georgian wines if  marketing campaign is duly deployed.

“But it will happen by producing delicious world-class wines, by offering a unified message about remarkable wine culture through the Georgian Wine Association, by delivering the wines at reasonable prices vintage after vintage, and by using passionate and experienced US wine professionals as partners in the effort to do the right job on the American side. And when it does happen, it will have been a complete process and therefore have the highest chance of lasting success,” Keith Johnsen, President of Daqopa Brands, focused on wine import from Georgia and Chile to the US as well as working with a number of producers in Washington, Oregon as well as California, said in the on-line interview with Georgian Journal.

According to him, at the US market that is literally awash in wine all is about value and the bulk of all Georgian wines must be sold for USD10-15 to be successful there.

“Anything over USD 20 remains a difficult sell, and while there is still some activity in that price-range, it is much more limited in volume and usually reserved for recognized regions and brands (such as Napa, or France), and in many cases those wines are also at new lower levels and relative values themselves (for instance, what was previously USD 35 –40 might now be seen regularly for USD 24).  It is critical to remember that we are pioneering a whole new category and country of origin here, with unknown grape varietals - and high prices will be a significant barrier to trial,” Johnsen said.

Cristopher Branch, a wine lawyer in Los Angeles, doubts that the name confusion of Georgia as a country with the name the US state Georgia that does not produce wine may make Georgian wines difficult to sell at the US.

According to Karl Storchmann, Economics Department at New York University, and Managing Editor of Journal of Wine Economics, the US market is quite difficult unlike Russian market for each state has its own rules and he doubts that the US market can replace Russian one to Georgia.  He recommends Georgian wines be focused in a few states like NY, FL, NJ... since there is a large Russian-born and Georgian-born population, “moreover the west coast states don’t drink a lot of imported wines”.

Johnsen strongly disagrees with both opinions.

“Italian, French, Chilean, and Greek wines - as a few examples - are hardly consumed only in areas where those ethnic groups live and shop!  This formula has been tried for years now, with more Georgian wines being offered in Brighton Beach NY than any other single sub-market - and it has not produced any appreciable results.  It is simply “preaching to the choir”, and there is very limited sales potential in doing that…This will never do anything to make saperavi the next malbec,” he said.

Of confusing names of Georgia as a country and Georgia, the US state, he thinks it can be solved by educating American consumer. On the other hand “confusion” can do a service if wrapped duly in marketing tools.

“Retail stores will put them [Georgian wines] on the shelf or display them in the imports section; and written words, on menus or store signs, can easily make immediate statements that  (“From the Cradle of Wine”, or “The World’s Oldest Wine Region”, for instance) that catch attention and generate intrigue.  It is an underestimation of the American consumers’ intelligence and curiosity, and the American merchants’ ability to teach and share, to think that this Georgia-state matter is significant.  If nothing else, it creates amusing conversation - which is always an excellent first step,” Johnsen said.

Print
Other Stories
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
20.04.2019
21.04.2019
USD
1
USD
2.6935
2.6935
EUR
1
EUR
3.0291
3.0291
GBP
1
GBP
3.5021
3.5021
RUB
100
RUB
4.2126
4.2126
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
2.6935
EUR
1
EUR
3.0291
GBP
1
GBP
3.5021
RUB
100
RUB
4.2126
April 2019
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