The Margvelashvili family acquired Georgian winery Tbilvino three decades ago and now operate two sites in Tbilisi, the capital of the European country, and in Kvareli. Managing director George Margvelashvili, who took the reins 25 years ago, sat down with Just Drinks at London Wine Fair to talk exports, target markets and ancient methods of wine production.
Ben Wein (BW): Where is Georgian wine most in demand?
George Margvelashvili (GM): The Russian market is the biggest for Georgian wine. During the Soviet Union, there were not many wine suppliers to Russia and Georgia was considered to be the best wine producing country. There was also Ukraine which was mainly popular for sparkling wines and Moldova, but Georgia was always perceived as a country for high profile wines. It was supplying all the Republics of the Soviet Union and because Russia is the biggest country, it has always taken a large proportion of the wine.
BW: Is the same true for Tbilvino?
GM: For our estate, Russia is not the biggest market because we stopped exporting to Russia for some time but now we are going back. We also sell in Ukraine and Kazakhstan but we are very well represented in some European countries, like in Germany, in Poland, in the Baltic States, and the UK is our target market.
Last year, about 33.5% of all Georgian wines shipped to the UK were supplied by Tbilvino, so we can say Tbilvino is the most in demand Georgian wine in the UK.
BW: You see the UK as a big opportunity. Are there other countries you want to expand to?
GM: The UK, Germany and the United States, where we are already present but are now starting to reach bigger importers. Then there is Canada, where we have been exporting for several years but we are looking to do business with one big representative there. Last year, we entered South Korea and made a very good deal with one of the top three players. Then, China. We also export there, but we are working on finding an import partner. Those are our target markets that we will be working towards for the next several years to present our flagship collection.
BW: Why is it important to diversify export markets?
GM: Russia now accounts for about 60% of demand for Georgian wine but, at Tbilvino, Russian exports are very low, below 5%. We want to direct our wines to the world’s top ten wine markets and also to redirect the attention of other leading Georgian producers because we cannot be the only one. If we want to be a flagship winery, we need other ships to follow us.
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By GlobalDataIn Georgia, you can find companies that are producing twice, three or four times as much as us because they are exporting to Russia but there isn’t any global Georgian wine brand. This is our vision and intention: to become a global Georgian wine brand.
BW: Is it a simple process to export wine from Georgia?
GM: If you have a good wine it’s quite easy. There is some paperwork you have to do to get customs clearance and get export certificates and certificates of origin and then pass through the National Tasting Committee. The tasting board members are not government employees. Most of them are active wine makers. A few of our own wine makers are part of that committee. They are called from time to time, but they never know when they will be called. It’s like being called to court, but for a blind tasting.
BW: Why is viticulture so strong in Georgia?
GM: Every Georgian has a relative in the countryside who makes wine. The history of wine goes back 8,000 years. In the Georgian National Museum there is a qvevri (large clay vessel used for fermentation) on display. Not only was the clay of the qvevri 8,000 years old but they even found the grape seeds inside, which explains that the vessels were used to ferment and create wine.
The qvervi wine making method is protected by UNESCO as a cultural heritage. If the wine is made with qvervi we specify it on the label with the icon of a qvervi. It’s very common in Georgia to use a qvervi. Obviously, qvervis were used mainly by small farming families, mainly in the countryside and during the Soviet Union when industry was heavily industrialised, big producers would not use the qvervis, but the small farming families kept this tradition.
Now, producers like us are interested in this method and ten years ago we went to find qvervis and had to buy them from farming families because we could not find new ones. There are not many qvervi master makers in Georgia because it is an old tradition.
BW: Given your interest in old methods, what do you think about modern innovations like canned wine?
GM: I think there’s space for that, but maybe it’s a temporary trend. Every generation will bring novelty to a culture as old as wine. Now for example we have a rising trend of non-alcoholic wine. We should accept new ideas and trends but the vast majority of demand for still wines will stay in glass bottles.
