ArmInfo. We have not much to boast of, our winemaking industry has not become more export-oriented. Tigran Jrbashyan, Partner, Director of Management Advisory Services at Ameria said, ppresenting the results of the "Ameria" company's "Alternative Wine Export Markets" study.
Analyzing the situation over the past 5 years, he noticed that the growth rates of wine production and its export are proportional and show almost equal dynamics. In particular, over the specified period of time, wine production in Armenia increased by 25%, with an increase in export supplies by 23%.
"When we try to understand our readiness to export wine, we come to the conclusion that our producers are not yet ready to export on an industrial scale. And one of the limitations is not the rules of the game, but the producers themselves," the expert said, noting that the volume of wine produced in Armenia does not account for even 10% of the volume of wine production in Georgia.
In this regard, he explained that the practice of certification in Armenia is at a very weak level, and there are also serious problems related to wine branding and labeling. As Jrbashyan noted, in fairness, we note that the situation with branding and labeling has improved somewhat in recent years, but there are still some problems associated with compliance with international standards. In addition, he also pointed out shortcomings in meeting market requirements, positioning in niche markets (organic, biodynamic wines). Among others, the expert also pointed out the importance of developing digital technologies in the field of e-commerce.
At the same time, Jrbashyan considers the insufficient quantity of high-quality grapes from which high- quality wine could be produced to be the main challenge of Armenian winemaking.
At the same time, he noted that according to the study, only 15-18% of grapes in Armenia are used for wine production, the rest goes to the production of brandy, because a significant part of the grapes are brandy (fortified) varieties.
At the same time, according to him, the business of Armenian winemakers meets food security requirements only to a limited extent; there are limited resources to control the quality of production of small distilleries, the number of which is steadily growing. Also, transport and logistics costs are too expensive to enter the international market. There are problems with access to inexpensive financial resources, the marketing skills of winemakers are low, the level of application of Good Agricultural Practices (GAP) at the grape growing stage is insufficient, and fragmented land is used inefficiently.
Speaking about what the state is doing to develop and expand the sector, Tigran Jrbashyan noted that today winemakers can take advantage of the state leasing promotion program to purchase the necessary techniques, equipment, etc. There is also a subsidy program for intensive vineyard construction for wineries, while the VAT exemption system and certain tax incentives for newly established vineyards are still in effect.
According to the data of the Statistical Committee of the Republic of Armenia, 12.5 million liters of wine were produced in Armenia in January-November 2023, which is 14.1% higher than the previous year's figure (compared to a 2.7% decrease from the previous year).
According to the Customs Service data, , Armenia increased its wine export volumes by 17.6% to 1.9 million liters in H1 2023, with customs value increasing by 12% to $6.9 million.
The main volume of exported wine goes to the Russian market with a share of 85.5%. The main volume of exported wine goes to the Russian market with a share of 85.5 percent. Followed by a wide margin: the USA (4.2%), Belarus (2.4%), Belgium (1.3%), France (1.2%), Italy (0.9%), Lithuania (0.7 %), Georgia, Poland, Kazakhstan (0.4% each), China (0.3%), Czech Republic (0.2%), UAE (0.1%). Over 1 thousand liters were exported to Estonian, Australian, Kyrgyz, Japanese, Ukrainian, Israeli, Greek, Danish, German, Canadian, and British markets. Less than 1 thousand liters were sent to Bulgaria, Switzerland, Latvia, Cuba, Malta, the Netherlands, Sweden, Finland, Spain, Benin and Portugal.
