W14 Wine Update: Russia Experienced Production Surge in Q1-2024, and Reduce Excise Tax Rates to Support Local Production, Georgia Growers Rejected New Proposal from GWC

Published 2024년 4월 11일

In W14 in the wine landscape, Russia experienced a substantial YoY increase in the production of alcoholic beverages, including vodka, cognac, grape, sparkling, and liqueur wine in the first quarter of 2024. Furthermore, Russia approved amendments to reduce excise tax rates on domestic sparkling wines to support and strengthen the domestic wine industry. The reduction will start from May 1, 2024, and last until the year's end, with incremental increases planned for the subsequent two years. In addition, recent genetic studies have revealed the existence of six grape varieties on Easter Island, including known types like País and Moscatel de Alejandría, suggesting an early interest in cultivating wine in this region. Lastly, Georgia grape growers rejected the wine & grape marketing order, proposed by GWC.

Russia Witnessed Significant Increase in Alcoholic Beverages Production Between Jan-24 and Mar-24

Between Jan-24 and Mar-24, Russia experienced a significant increase in the production of alcoholic beverages. During this period, The overall production of alcoholic products jumped by 17.3% YoY to 42.7 million decaliters. In particular, Vodka production increased by 3.1% year-on-year (YoY) to 15.9 million decaliters. Cognac production saw a 6.5% YoY rise to 1.9 million decaliters. Grape, sparkling, and liqueur wine production increased by 25.8% YoY, 42.7% YoY, and 36.4% YoY respectively. However, grape-containing drinks without ethyl alcohol saw a slight decline.

Russia to Reduce Excise Tax Rates on Domestic Sparkling Wines to Support Local Production

The State Duma Committee on Budget and Taxes of Russia has approved amendments to reduce excise tax rates on domestic sparkling wines, including the Russian equivalent of champagne. The reduction will be from USD 1.53 (RUB 141) per liter to USD 1.29 (RUB 119) per liter starting May 1, 2024, and will last until the end of the year, with incremental increases planned for the subsequent two years. These amendments also include modifications to the tax base for fortified wines and introduce a new coefficient to enhance tax deductions for excise taxes on wine materials, all aimed at supporting and strengthening the domestic wine industry.

Genetic Studies Reveal Six Distinct Grape Varieties in Easter Island, Chile

Recent genetic studies have unveiled the presence of six distinct grape varieties on Easter Island, Chile, dating back to the 19th century, including known types like País and Moscatel de Alejandría, alongside three native Criolla varieties and one unidentified variety. This discovery suggests an early intent to cultivate wine. The origins of these vines trace back to mainland Chile and potentially Europe. The island's viticulture was rekindled six years ago by winemakers Alvaro Arriagada and Fernando Almeda, culminating in the production of Rapa Nui's first sparkling wine last year, marking a significant milestone in the island's wine history.

Georgia Wine Producers Fail to Pass Proposed Market Order for Second Consecutive Year

According to the Georgia Agriculture Commissioner, United States (US), Georgia wine producers failed to pass the Georgia Wine Commission’s (GWC) proposed market order. The proposal was supported by only 39% of voters, less than the required two-thirds. This marks the second consecutive year the market order failed to pass. The failed proposal aimed to set assessment rates at 5% per liter on retail wine sales and 1% per liter on wholesale sales.