Levan Mukhuzla: “A third of wine exports reaches new markets.”

Verdict: FactCheck concludes that Levan Mukhuzla’s statement is HALF TRUE.

Georgia exported the most wine to Russia in 2024, with Russia accounting for over 66% of total wine exports. The combined share of Russia, Ukraine, Kazakhstan and Belarus constituted 77% whilst exports to CIS countries and Ukraine together made up 78.2%.

The National Wine Agency targets marketing campaign funds to only non-traditional markets, which generate a third of Georgia’s wine export revenue, according to Levan Mukhuzla.

FactCheck requested clarification on the definition of “traditional markets” and the Agency noted that former Soviet republics, excluding the Baltic countries, are considered traditional markets.

In reality, non-traditional markets account for less than a quarter of total exports (for instance, the combined share of Poland, China, the US, Germany and the UK – those mentioned by Mukhuzla – is below 15%). A third of the revenue comes from countries other than Russia. Notably, the share of non-traditional markets was gradually increasing before the Russia-Ukraine war but the aforementioned trend reversed after the war began.

Given the factual inaccuracy and the recent deterioration in the trend, FactCheck concludes that Levan Mukhuzla’s statement is HALF TRUE.

Analysis

During his appearance on the Public Broadcaster show Biznespartniori (Business Partner), Levan Mukhuzla, Chairman of the National Wine Agency, stated (at 26:02): “We do not spend a single tetri on our traditional markets… The data also shows that about a third of our revenues come from those markets – and in fact, even more than a third comes from these markets where we actively operate. The figure cited – USD 270 million (revenue from wine exports) – is indeed accurate. A third of this amount is generated from countries such as the United States, Great Britain, Germany, Poland, China, etc.”

Wine exports totalled USD 276 million in 2024 with USD 183 million going to Russia. Wine exports to Russia have been increasing in both value and share since the embargo was lifted in 2013, aside from a few exceptions. Russia’s share in total wine exports reached 66% in 2024, marking the highest level in the past 12 years. Furthermore, Russia’s share in terms of volume surpassed 70%, setting a new record.

Whilst Ukraine ranked second before the pandemic and the war, Poland took its place after the war began, pushing Ukraine to third. Notably, six of the top ten export partners were former Soviet republics, collectively accounting for 79.4% of total wine exports. Furthermore, former Soviet republics collectively account for 78.3% of total wine exports, when excluding the Baltic states.

Graph 1: Wine Exports

Source: National Statistics Office of Georgia

The Chairman of the National Wine Agency discussed the so-called non-traditional markets in his statement. FactCheck confirmed through a phone conversation with the agency that former Soviet republics, excluding the Baltic countries, are considered traditional markets.

The share of wine exports in non-traditional markets – where the Agency allocates funds for marketing campaigns – constituted 21.8% in 2024 which is significantly lower than a third of the total (33.3%). In reality, just over a third of exports, 33.8%, were sold to non-Russian markets.

Levan Mukhuzla specifically cited five countries: Poland, China, the US, Germany and Great Britain. These countries collectively accounted for 14.9% of total exports in 2024. Moreover, their combined share amounted to 16.7% in 2021 – before the war, and 15.2% in 2019 – before the pandemic.

Graph 2: Wine Exports by Value (USD Million) and Share

Source: National Statistics Office of Georgia

The share of the CIS countries and Ukraine has consistently exceeded 75% of Georgia’s wine exports. Whilst there was a slight decline in the trend before the war, exports to these markets have grown again since 2022. Sales in Ukraine have decreased but exports to Russia have increased. Russia’s share in wine exports constituted 54.7% and Ukraine’s was 10.5% in 2021. Later, Russia’s share had risen to 66.2% by 2024 whilst Ukraine’s had dropped to 4.5%. Four countries stand out amongst the former Soviet republics: Russia, Ukraine, Kazakhstan and Belarus. These four markets accounted for over 77% of total wine exports in 2024 with 213 million litres sold.

Apart from the former Soviet states, a significant portion of the remaining market is indeed made up of the countries cited by Levan Mukhuzla. However, exports to these non-traditional markets have increased by only 7 million litres whereas sales in traditional markets have grown by 40 million litres as compared to 2019.

High economic reliance on any single country poses risks and political factors further worsen this risk in the case of Russia. Additionally, the price of exported wine is considerably lower in Russia, Ukraine and other former Soviet republics than in European countries and the US. The average export price per litre of wine amounted to USD 2.74 in Russia, USD 2.77 in Ukraine and USD 2.85 in Belarus in 2024. In contrast, the average price in EU countries constituted USD 3.14, USD 3.50 in China, USD 4.32 in the UK and USD 5.95 in the US. There are exceptions, such as Poland, which has ranked second in sales for three consecutive years. Notably, the average selling price of Georgian wine per litre in Poland was USD 2.48 and USD 3.24 in Kazakhstan, a CIS member. Taiwan recorded an export price of UDS 49 per litre of Georgian wine, however total export revenue was modest at USD 11,000. A similar trend can be observed in Singapore where whilst the price per litre reached USD 40, exports totalled USD 203,000.

Graph 3: Average Export Price per Litre, USD

Source: National Statistics Office of Georgia

When observing the top ten countries by total wine exports, the top three countries will rank amongst the bottom three in terms of export price. Russia, accounting for two-thirds of the total, is only ahead of Poland when it comes to export prices.

In total, a third of the revenues from wine exports is generated not by new markets but by other countries excluding Russia. The combined share of Russia, Ukraine, Kazakhstan and Belarus exceeds 77%. Moreover, all former Soviet republics (excluding the Baltic countries) collectively account for 78%. Consequently, the share of exports to the remaining countries is less than a quarter, with the share showing a downward trend after the war, rather than an increase. The share of non-traditional markets peaked at 24.8% in 2021 but had decreased to 21.8% by 2023-2024 when analysing the past seven years.

The share of the countries directly mentioned by the Chairman of the National Wine Agency fluctuates around 15%. Given the factual inaccuracy and the recent deterioration in the trend, FactCheck concludes that Levan Mukhuzla’s statement is HALF TRUE.