He had a point. In 2004 80% of Georgian wine exports went to Russia; now the stuff is sold in over 30 different countries. And to compete internationally, the quality of the best wines has increased: at the beginning of this month, for instance, Badagoni’s 2007 Alaverdi Tradition collected a prestigious Decanter award in London.
Wine is central to Georgia’s identity: a mainstay of its economy, a source of considerable pride and, all too often, one of the reasons for the erratic driving. Some archaeologists claim wine-making began here, about 8,000 years ago. And for 200 years, Georgian wine delighted Russian palettes.
Things started to go wrong in 1985, when Mikhail Gorbachev launched an anti-alcoholism campaign. Vineyards were uprooted throughout the Soviet Union; barely a quarter of Georgia’s survived. The economic collapse of the early independence years damanged the industry futher. Counterfeiting in Georgia's main export markets was rife. And once the Russian embargo kicked in, exports plummeted: in 2007 they were at just 36% of their 2005 levels, official statistics show. Some producers closed down; others fought for survival in a diminished export market of ex-Soviet republics and Georgian emigrants.
Things are improving. This year exports to Ukraine and Kazakhstan, Georgia's biggest foreign markets, are up on 2009. Earlier this year, the EU agreed to protect Georgia’s geographical appellations in a bid to reduce counterfeit wine. And in another nod of international recognition, later this week the 2010 Masi International Wine Prize will be presented to the Orthodox Archbishop of Kakheti, for services to the Georgian wine industry.
Significant challenges remain. For a start, Georgian wine is too expensive to attain significant market share in the big markets of western Europe and the US. And the coutnry lacks the skilled professionals it needs to make the industry more competitive. Last week, President Saakashvili claimed the wine industry’s crisis was over. Perhaps he's been enjoying the fruits of its success.
Source: The Economist
