Russia Says Some Georgian Wine, Brandy Producers ‘Fail to Meet Quality Standards’

Russia’s state consumer protection agency, RosPotrebNadzor, said it has blocked ten shipments of brandy and wine produced by two Georgian companies because of their failure to “meet safety and quality requirements.”

“Analysis of quality and safety of the supplied products shows systematic violation of production technology and insufficient level of control over the produced commodity both from the producers and competent Georgian authorities,” RosPotrebNadzor said in a statement on August 4.

It also said that over 6.7 million liters of alcoholic beverages, mostly wine, from total of 45 Georgian producers were imported into Russia this year.

The Georgian Ministry of Agriculture responded on August 5 that relevant Georgian authorities are looking into specific cases raised by the Russian state consumer protection agency.

It, however, also said in a statement: “Quality of the Georgian wine and other alcoholic beverages is strictly controlled and examined in certified laboratories by the relevant agency of the Ministry of Agriculture. Georgian wine is one of the main export products of the country, and the state, as well as entrepreneurs and exporters, are maximally interested in complying with the quality and safety standards.”

Georgian wine exports have almost halved in the first seven months of this year to 16.81 million 0.75-liter bottles, compared to 31.37 million in the same period of 2014.

The value of exported wine stood at USD 47.58 million in January-July, 2015, according to the National Wine Agency of Georgia.

The fall is attributed to sharp drop in wine exports to Russia and Ukraine, which declined by 59% and 63% y/y, respectively, in January-July, 2015.

Despite this decline, Russia still remains the largest export market for Georgian wines with 8.47 million bottles, followed by Kazakhstan – 2.53 million bottles; Ukraine – 1.51 million bottles; China – 984,221 bottles, and Poland – 921,828 bottles in the first seven months of this year.

Georgia exports wine to total of 16 countries, according to the National Wine Agency of Georgia.

Except of Russia and Ukraine, Georgian wine exports to its other major markets have increased in the first seven months of this year. There was 3% y/y increase in Kazakhstan; 35% y/y increase in China and 2% y/y increase in Poland.

In 2013 Russia re-opened its market for the Georgian wines, mineral waters and other products, which were banned in Russia since 2006. Value of exported Georgian wine to Russia saw a significant increase in 2013 and almost doubled to USD 111.4 million in 2014.

In October, 2013 RosPotrebNadzor blocked shipments of 28 sorts of alcoholic drinks produced by seven Georgian companies

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