BAKU, Azerbaijan, August 12
By Tamilla Mammadova – Trend:
One of the largest wine and spirits producers in Georgian Kakhetian Traditional Winery (KTW) ended the 2020 year with a 15 million lari ($4.8 million) loss, Trend reports via the company's report.
This is the first time in the last 4 years the company has suffered a loss.
The company’s annual report says that export markets account for most of the KTW Group sales. The company's main export market is in Russia, where Kakhetian traditional winemaking sold the products worth 65 million lari ($20.9 million), followed by Ukraine with 32 million lari ($10.3 million), Belarus - 1.7 million lari ($548,835), Moldova - 1.4 million lari ($451,981) and China - 0.5 million lari ($161,422).
Total export revenue amounted to 103 million lari ($33.2 million) while in the local market the company sold alcoholic beverages in the amount of 2 million lari ($645,688). Compared to 2019, in 2020 sales in the Russian market increased by 27 percent, in Belarus by 100 percent, in Latvia-Estonia declined by 2-fold, in the US increased by 3.33-fold, in China fell by 73 percent. Compared to 2019, in 2020 KTW Group posted a 3 percent increase.
In 2020, KTW Group founded the "KTW IMPORT & DISTRIBUTION" company in Poland that is engaged in the presentation/sale of products in EU countries. In December last year, KTW Group issued $10 million worth of securities for a two-year period to repay non-performing bank loans and develop the agricultural sector.
In 2020, the Kakhetian traditional winemaking spent 2 million lari ($645,688) on salaries, 1.6 million lari ($516,550) – on the maintenance of vineyards and 205,888 lari ($66,469) - on charity. The net loss from foreign currency conversion reached 12 million lari ($3.8 million).
Kakhetian Traditional Winemaking is one of the largest wine and spirits producing companies in Georgia and the Caucasus region. Established in 2001, KTW produces wine, brandy, sparkling wine, and chacha with traditional Georgian techniques mixed with the state of art technologies.
Currently, the group has five o wineries, four of which are located in Kakheti and one in Adjara.
According to the National Wine Agency, in 2020 Georgia exported up to 92.4 million bottles (0.75 l) of wine to 60 countries that are 1 percent less than in 2019. The value of exported wine reaches $216.5 million that is 9 percent less than in the same period of 2019.
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