Thursday, April 18, 2013

Georgian wines may oust Armenian from Russia's market

18.04.2013 (Hvino News) Return of Georgian wines to Russian market may cut growth of export of Armenian wines to Russia, according to Avag Harutyunyan,  Head of Union of Armenian Wine Producers told, interviewed by Armenian news agency Arminfo.

A threefold growth of export of Armenian wines to Russia was planned for the coming five years.  Wine export from Armenia grew 60% in 2012 to 1.185 million liters versus 744,000 liters in 2011, with nearly 75% of sales being in Russia. A few years ago, export totaled 500,000 liters, Harutyunyan said. Georgian wineries have raised significant investments in modernization over the last years and have greatly improved the quality of wines.

"Now, they will offer the best products in the Russia market. Georgian wines are now of higher quality than the Armenian ones, but the prices will be similar. Armenia will have to raise additional investments in modernization of wineries to sustain competition," Harutyunyan aid.

He added that it will take a couple of years until Georgian wines will again become popular in Russia and take their niche in the market. The embargo on the Georgian wine may be suspended in May or June 2013. Harutyunyan said that the Russian market capacity is some 1.2 billion bottles a year.

Earlier, Executive Director of Yerevan Brandy Company, Head of the Association of Armenian Brandy Producers Ara Grigoryan told media that return of the Georgian alcohol to Russian market may create problems for Armenian wines, but never for Armenian brandy. He said Armenian brandy is more popular in Russia.

© Hvino News

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