Wine Industry – Business 360° with Mariam Koyava
In the latest episode, we wrapped up our discussion on Georgia’s wine sector, focusing on its financial landscape.
Key topics of discussion included:
- From 2019 to 2023, the CAGR of turnover for wine-producing companies was 4.7%
- The average gross profit margin in Georgia’s wine sector is around 31%, compared to 45% in developed countries. This suggests that either wine prices are too low or direct costs are too high.
- With effective management, net profit margins have significant growth potential. In Georgia, the average net profit stands at 5%, whereas it reaches 15% in the EU and 10–15% in the U.S.
The 3-episode discussion highlighted both the challenges and opportunities within Georgia’s wine industry.
As of now, there are 1,133 active registered wine producers in Georgia. Of these, 54% are limited liability companies (LLCs), while 41% are individual entrepreneurs. About 97% of wine producers are categorized as small-sized businesses, with only 0.5% (6 businesses) considered large-scale. However, many households in Georgia also produce wine for personal consumption and are therefore not included in the official statistics.
In 2023, the total turnover of wine-producing companies in Georgia reached 1.1 billion GEL. Between 2019 and 2023, the turnover of these companies grew at an average annual rate of 4.7%, which was partially driven by an increase in wine prices. Notably, up to 15% of wine-producing companies’ turnover comes from other sources, such as the production of chacha and other products.
According to the National Statistics Office of Georgia (GeoStat), the ten largest wine producers in Georgia in 2023 (listed alphabetically) were:
- Alaverdi Alcoholic Beverages Company
- Askaneli Brothers
- Badagoni
- Bolero & Company
- Dugladze Wine Company
- Kotekhi-Gurjaani Wine Factory
- Telavi Wine Cellar
- Teliani Valley
- Tbilvino
- Winery Khareba
In 2023, the combined turnover of these ten companies exceeded half a billion GEL, accounting for almost half - specifically 46.6% - of the total turnover in the wine production sector.