Georgian wines will oust Armenian ones from Russia market following embargo suspension

 Return of Georgian wines to the Russian market following embargo suspension may cut growth of export of Armenian wines to Russia, Avag Haroutiunyan, Head of the Union of Armenian Winemakers, told 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, Haroutiunyan said. Before the embargo on Georgian wines in Russia, 50-55 million bottles of Georgian wine were sold in that country annually, despite the fact that the production capacity of Georgian wineries is some 15-20 million bottles. This shows that counterfeit production was manufactured either in Georgia or in
Russia. 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," Haroutiunyan said. 

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. Haroutiunyan said that the Russian market capacity is some 1.2 billion bottles a year.

Earlier, Executive Director of the Yerevan Brandy Company, Head of the Association of Armenian Brandy Producers Ara Grigoryan told media that return of the Georgian alcohol drinks to the Russian market may create problems for the Armenian wines but never for the Armenian brandy, which is more popular in Russia and Armenian brandy sales are incomparable with the Georgian ones.