Recently, wine and spirits business faced its hard times in Georgia. Difficulties were caused by number of domestic and foreign economic factors, including but not limited to, inflation of the national currency, increasing of excise tax on strong alcohol drinks (Chacha, Brand, etc) and sharp dropping of sales in major export countries (Russia, Ukraine).
Thus, given situation challenged both winemakers and consumers, from different angles. Companies were more interested in local market. Some of them, considered low spending power of the Georgian population, reviewing price policy of the last year, which positively influenced the budget of the local wine consumers.
On March 1, Decree of the Government of Georgia entered into force, based on which excise tax on strong alcohol drinks were doubled, increasing the price in 1-2 Gels. Winemaking, import and export do not fall within the scope of the above said regulation, supposedly based on the risk that wine field faces in Georgia.
Generally, wine is made from local harvest in Georgia, this, negative impact of exchange rate does not affect directly winemaking. As for the product packing, if produced in large scales, it may require significant expenses in foreign currency as well. Though, notwithstanding this, wine prices remain unchanged.
Managers of the wine selling spaces (Wine Gallery, Wine Cellar, Wine Time, Georgian Wine Legend, Sarcho, Vintage) explained for the Wine Informational Center that prices are not increased on recently provided supplies, vice versa, some of the winemakers, like companies “Badagoni” and “KTW” even decreased the prices on some bottle wines, unlike PDO wines. As the representatives of the shops confirm, prices are increased only several wines of “Chateau Mukhrani”.
If the Georgian Lari is stabilized, increasing of wine prices in Georgia is not expected. It should be underlined that, wine companies take local conjuncture and demand into account more attentively.
© Wine Club, National Wine Agency