Armenia and Georgia to Resolve 'Kakheti' Issue in May: Deputy Minister of Economy

Armenia and Georgia have agreed to establish a working group to address the labeling issue of the Armenian local "Kakheti" type wine. Armenia's Deputy Minister of Economy Arman Khachoyan stated in an interview with Sputnik Armenia that a final decision will be made during the visit of the Georgian delegation to Yerevan in May.

From April 5-7, the Armenian delegation, led by the Deputy Minister of Economy, was on an official visit to Georgia. Various bilateral agenda issues were discussed during the meetings, including problems related to the names of several Armenian wines that arose in December 2020 and January 2021.

Several Armenian companies engaged in wine production and exporting to third countries faced issues this past winter when trying to supply their products through Georgian territory. Containers full of Armenian wine were stuck in the customs area of the neighboring country, resulting in losses for the businesses. The Georgian side did not clarify the reasons for the emergency situation at that time. In Armenia, it was speculated that the issue was related to the local name of the "kakheti" grape variety, and it turned out they were correct.

Khachoyan explained that the delegation went to Georgia to discuss several matters. "Armenian wines often face difficulties when passing through Georgian territory. This concerns wines made from grape varieties that either sound Georgian or are mistakenly assumed to be Georgian varieties. However, these varieties are also grown in Armenia, and Armenian producers make wine from them," said Khachoyan.

Moreover, for many years, Armenia has produced about 2.5 million liters of wine annually from these types of grapes, including "Rkatsiteli," "Mskhali," and "Saperavi," as well as "Kakheti." The products are exported to various countries through Georgia.

Armenian wine has the potential to become a global brand, and significant efforts are being made in favor of Armenian cognac. Regarding the incidents in December and January, Khachoyan stated that the issue stemmed from the wine labeling by the manufacturer. The fact is that the Kakheti region, considered Georgia's best wine-producing area, is registered, and its name is under legal protection in the EU. Since 2014, there has been a bilateral agreement between Georgia and the European Union regarding the protection of geographical indications for food and agricultural products, under which the name Kakheti is legally protected.

Armenia could have filed a counterclaim, but no action was taken. As a result, the Armenian name distorts the registered geographical name. Because of this, Georgia did not allow the transit of these types of Armenian wines.

The Deputy Minister noted that exporters have also made several inaccuracies regarding labeling. "Armenian wines of the varieties 'Rkatsiteli,' 'Mskhali,' and 'Saperavi' will no longer face issues during transit through Georgia. This will be ensured if the specified names are not written on the bottles in Georgian," Khachoyan stated. "The issue of 'Kakheti' type wine is not yet resolved. The Deputy Minister emphasized that Georgia was unaware of the existence of an endemic type in Armenia that has nothing in common with their Kakheti region. The reality surprised them significantly.

A working group has been formed to try to jointly address the labeling issue, exclude the illegal actions of unscrupulous businesses, and assist those who have no illegal intentions. The Deputy Minister emphasized that everything is currently being done to raise the global recognition of Armenian wines. He noted that Armenian winemakers are faced with one challenge: to prove to the world that our products can be high-quality, in demand, and competitive.