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otar | 2 years ago
The problem with wine products being available on the US market is very complex. The main issue is US laws, taxes, and procedures.
As a small producer, to make my wines available on the US market, I need to find a licensed alcohol importer (~35% added margin). Alcohol importer is eligible to only sell wines to the licensed alcohol distributors (another ~35% added margin). Alcohol distributors are qualified to only sell to licensed retailers (another ~35% added margin). Add production and transportation costs to the US, and the price gets very high. Even if the market can bear such high prices, the procedures are so complex and out of producers' control that it's very unattractive market. Add the complexity of state laws and taxes. Each state has different requirements.
Several years ago, I imported a test batch of my wines to the US. Some bottles might still be available in the shops (3 shops in Delaware, Maryland, and New Jersey). Imagine you need an excellent importer/distributor willing to go the extra mile for your product. In that case, it takes a lot of work to find success. You may have a fascinating wine but may get stuck in these bureaucracies.
I was thinking of going D2C via an online store. However, most of the states don't allow shipping out of state. Besides, you still have to go through all those procedures mentioned above.
Hence, the US market is on hold for me right now.
VK538FY|2 years ago
In wine producing countries in general, and the US is one, one will encounter a lot of 'non tariff barriers to trade' (i.e., administrative challenges) that make the import of foreign wines difficult. To be frank, and despite the expense that you correctly underline, I can only imagine doing so with the help of an enthusiastic importer.
I know a retailer in Switzerland who would probably love to import Georgian wines (and many others, as long as they fit his taste) but the quantities would be so small to not even be worth your time.
Anyway, I do hope to visit Georgia one day and your cave.
otar|2 years ago
This leads us to another problem: you cannot easily sell niche products on a large market (Georgian wine and amber wine is one), mainstream customers want mainstream wines.
So, you are left with several options: 1) Do a mainstream wines - beyond my values; 2) Build a brand, which is very, very hard… 3) Do an exceptional wine, “so good they can’t ignore you”… that’s my long term goal. That’s why I am experimenting a lot, which I believe will lead me to a great results. Right now my wine could be ranked as top 5-10%, but my goal is to make it in top 1-2%. Check back in a few years :))