In W40 in the wine landscape, in Aug-23, Chilean bottled wine shipments decreased year-on-year (YoY) by 34.8% in volume and 26.3% in value. Meanwhile, the average price increased by 13% YoY to USD 32.3/box, primarily influenced by purchases from French merchants.
Moreover, in the first eight months of 2023, total exports of Chilean wine reached USD 821.9 million, a 24.2% YoY decrease in value and a 25.8% decrease in volume. The average price per box increased by 2.2% to USD 29.9 during this period. Most of the main bottled wine shipping destinations experienced declines in both volume and value in Aug-23, except for France and Ireland. The increase in export value to France was due to the actions of wine merchants and its high average price of USD 621/box, compensating for a 40% drop in volume.
Furthermore, in 2023, China was the primary destination in terms of export value, although Brazil surpassed it in volume. However, between Jan-23 and Aug-23, China and Brazil reduced their purchases of Chilean wine, with China decreasing by 38% in volume and 34% in value and Brazil experiencing a 12.6% drop in volume and an 11% drop in value.
From Jan-23 to Sept-23, retail sales of low-alcohol drinks in Russia increased by 17.2% YoY to 1.56 million liters. However, sales of liqueur wines decreased by 25% YoY to 59,900 liters, grape-containing drinks with ethyl alcohol dropped by 60% YoY to 2,530 liters, grape-containing drinks without ethyl alcohol decreased by 87.8% YoY to 34,310 liters, grape wines dipped by 7% YoY to 2.22 million liters, and sparkling wines decreased by 7.2% YoY to 870 thousand liters.
In Sept-23, there was a 5.4% YoY decrease in alcoholic product sales, totaling 1.88 million liters. Sales of grape wine decreased by 14.8% YoY to 280 thousand liters, sparkling wines by 7.8% YoY to 170,000 thousand liters, and liqueur wines by 12.9% YoY to 7,410 liters.
The legalization of online alcohol sales in Russia could boost the country's wine production and increase sales of Russian wines, according to an expert at the Anti-Counterfeiting 2023 forum. This move could serve as a growth driver for the wine industry and attract more buyers, particularly from smaller, low-volume farms. However, it may present challenges related to traceability requirements and excise taxes, as each stage of the process must account for and verify these taxes.
Lastly, the Georgian government offers financial aid of approximately USD 1,300 per hectare (ha) to farmers in the Kakheti region whose vineyards were damaged by hail in the 2023 harvest season. Despite having previously bought damaged grapes from these farmers, the government has decided to provide additional compensation. So far, state subsidies for the current grape harvest season have totaled USD 7.6 million. Georgia's wine industry is vital to its economy, with the country achieving record wine exports in 2022, reaching 103 million liters valued at over USD 250 million.