Guest Column: Wine and National Security

By Sasha Meyer

Wine is important. The drink can be a major source of revenue. For example, in Moldova winemaking accounts for 15% of the economy. It can even become a national security issue. Georgia, where wine is the third-largest export, has suffered a major blow since Vladimir Putin banned its wine imports.

Since then, Tbilisi has been trying to diversify its wine exports. Georgia has shown creativity, for instance by offering Jennifer Lopez half a million dollars to promote its wine (an offer the Hispanic celebrity declined). Overall, Georgia has been incrementally successful, getting its wines into some shops in Europe and North America. But a breakthrough has been elusive thus far.

Peculiarities of the wine market and emerging uses for grapes may offer Tbilisi a new opportunity. A study published in Wine Economics Journal found that getting on the radar of wine critics is a key. (The importance of gurus is corroborated by other sources, for instance in Robert M. Parker Jr.’s influence on patterns of wine consumption and the creation of new segments in the market.)

The study also concludes that continued critical coverage is useful, even if unfavorable at times. In other words, sending a bottle of Kindzmarauli for a review to Eric Azimov, Dorothy J. Gaiter and John Brecher and others could, in the long run, achieve as much as a pop star's expensive endorsement.

There’s also a new, emerging market for grapes. Resveratrol is a new health craze in the West. It’s extracted from grape seeds, skin and juice. Research shows that resveratrol can help delay many age-related diseases. Today, jars of resveratrol are in health stores in Europe, North America and online, where it retails for $20 each.

The market appears set only to grow: An American company is testing a resveratrol-based pill to fight diabetes. In Georgia, the loss of its biggest market combined with a bumper crop is forcing many to cut their vineyards, raising fears that the winemaking tradition could be lost. But resveratrol production could absorb some of the excess grape supply, make profitable use of residual byproducts of winemaking, and bring much-needed hard currency into Tbilisi's coffers.

Photo: ritingon
Rights: Creative Commons