Wine in-depth: Companies Losing Ukraine(4)
The company was founded in 2002 by refugee from Abkhazia and has become one of the leading Georgian wine exporters. This year Badagoni entered 3 new markets: England, Germany and Italy.
For many it may seem that the black cloud will be following wine producers through 2009. However, according to a report released by the International Wine and Spirit Record global wine consumption is forecast to continue to grow into the next decade. The United States will be overtaking Italy as the world’s biggest consumer by 2012.
The United States will be overtaking Italy as the world’s biggest consumer by 2012.
The report predicted the financial crisis affecting many wine-consuming countries would only have “limited” outcomes for the growth of the wine sector. The report forecast growth for the coming four years roughly in line with pre-crisis trends.
As it says production is expected to grow by 3.83 percent from 2008-2012 to slightly over 3 billion 9-litre cases.
Consumption is to grow at an even quicker pace by 6 %, over 2008-2012, reaching 2.8 billion cases.
In Russia, expenditures on wine nearly doubled in 2003-2007 and are expected to reach nearly USD 6.5 billion by 2012.
For many Georgian exporters foreign markets are the main source of sales. For this reason the financial crisis is becoming the major enemy for Georgian wine after the Russian embargo. It’s noteworthy to say that since the August war sales in Baltic States have increased. Wine producers are saying the main reason was solidarity for Georgian products and it was a move against Russian aggression. It worked well, but how long can this demand be maintained?
“As our export turnover strategy planning showed, in the beginning of a new calendar year we’ll have sales volume increased by 17-25% compared with the previous year. As for the entire year 2009, due to the existing global economic downturn, we were unable to increase the export volume as planned but have tried to keep the same index as in the year 2008,” says the General Director of Teliani Valley.
“The biggest share on export comes on our premium brands, but we also successfully export other brands in CIS and EU countries. Ukraine and Baltic States are importing the largest amounts of our products. Fortunately sales haven’t decreased in Ukraine despite the tough financial situation. Our main competitors in Ukraine are medium price range wines,” Khobelia explained.
Teliani Valley’s most popular brands in foreign markets are Saperavi Unfiltered, Saperavi, Mukuzani, Saperavi Rose, Tsinandali and Tsinandali aged in oak.
