Georgia - AIDV2020 · 2018. 5. 7. · 20-04-2018 © Elene Totibadze From the land acquisition to...

Elene Totibadze CLO and Senior Trademark Counsel at Marussia Beverages B.V. Group

CEO and CLO at JSC Marussia (Georgia) holding company of JSC Chateau Mukhrani and Georgian Wines and Spirits Company Ltd.

© Elene Totibadze 20-04-2018

International Wine Lawyers Association, European Section Annual Conference-Mainz, Germany, April 20th, 2018

From the land acquisition to the harvest - legal and administrative constraints. The case of Georgia


From the land acquisition to the harvest - legal and administrative constraints The case of Georgia Topics to discuss: Georgia - Cradle of Wine Land Acquisition Effects of privatization Administrative inspections Foreign investments and state support IP Law aspects Labor Law Uniqueness of Georgian Wine industry Wine Tourism in Georgia


Why GEORGIA is interesting in wine world?

8000 Years of Winemaking

Scientists say 8,000-year-old pottery fragments have revealed the earliest

evidence of grape wine-making

The earthenware jars containing residual wine compounds were found in two

sites south of the Georgian capital, Tbilisi

Some of the jars bore images of grape clusters and a man dancing


GEORGIA Cradle of Wine

Georgia is a land famed for its natural bounty.

There are over 525 endemic grape varieties, a greater diversity than anywhere else, with around 40 being used

in commercial wine production.

Conditions are well suited for viticulture: Summers are rarely excessively hot, winters are mild and frost-free. The Caucasus mountains around the vineyards are full of natural springs and rivers drain mineral-rich

waters into the valleys.

Around 45 000 hectares of vineyards are under cultivation.

There are 18 Specific Viticulture Areas (Controlled

Appellations of Origins).


New Changes in Georgian Legislation

Non-EU

June 2014

Association Agreement

Entered into force on

July 1st, 2016

DCFTA

New amendments in the Law of Georgia on “Vine and

Wine” after 1998 and

New Technical Regulations on General rules of wine

production and determination of permitted

processes, materials and substances


Land Acquisition Difficulties in Georgia

Special legal

regime on the acquisition of

agricultural lands by foreigners

Legal and administrative constraints to

existing owners and potential investors

Ways of Privatization

through direct sale in exchange of investment and public auction

Ownership over vineyards – only

private owned

and no-lease allowed


Land Acquisition Difficulties in Georgia

2013 - Agricultural Land is a Vital Resource of the country

2014 - Mathias Huter vs. Parliament of Georgia

2017 - New changes cannot serve as a complete ban on the sale of lands to foreign owner companies or persons without citizenship, however it will enable special regulations towards

land as a Vital Resource


Administrative inspection of vineyards in Georgia

No viticulture register at the moment Project started in 2017 Harvest register and management

Ready product control by National Wine Agency

Degustation Committee and Inspection


Wine Sales - Record number of Georgian wines exported in 2017 Georgia exported 76.7 million bottles of wine to 53 countries in 2017

a record number of wine in the past 30 years Last year Georgia generated about $170 million from the sale of wine abroad. Revenue increased by 49% from 2016, while the volume of exports increased by 54%. The top five countries that imported Georgian wine in 2017 were: Russia – 47,778,920 bottles Ukraine – 8,502,554 bottles China – 7,585,407 bottles Kazakhstan – 3,322,867 bottles Poland – 2,676,440 bottles Export was made by 250 Georgian companies.


Foreign Investment and State Support

FDI

Preferential Agro Credit Project since

2013

Vineyards

Insurance USAID

IBRD – 80M


IP Law aspects

Trademarks Trademark Law of Georgia Class 33, mainly wine is the leader in TM

applications

Madrid system of international protection Main problem areas: China and Russia

PDO and PGIs Law of Georgia on Appellation of origin

and Geographical Indications

State Registry – 18 PDOs and 20 GIs

Worldwide registrations- 3000 in EU

Permission to have Appellation of Origins

New project of amendments


Labor Law of Georgia

New Labor Code of Georgia- 2013

No special regulation for vineyards workers

Low wages – 20 GEL i.e. 7 EURO per day during harvest

Harvesting grapes by hand


Uniqueness of Georgian Wine industry

Preservation of agricultural lands

(pros & cons)

Qvevri Wine and new color “Amber”

Bulk wine import/export and blending limitations


Uniqueness of Georgian Wine industry

Protected by UNESCO

From 2013

Amber wine in the List of OIV’s

Special Wines


Wine Tourism in Georgia-Record number of Tourists in 2017

In 2017, 7,554,936 tourists visited Georgia, which brought $2.7 billion worth of income The number of arrivals in Georgia increased from: The United Kingdom + 39.9% Netherlands + 31.1% Spain + 29.9% France + 29.6% and Germany + 25.7%

Invitation to Georgia and

our wineries

20-04-2018 © Elene Totibadze

Many thanks for your attention!

Disclaimer: the information provided in this power point presentation is of general nature and for

information purposes only. Nothing in this presentation should be construed as legal advice or

legal opinion. This presentation does not create a client-attorney relationship

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Georgia - AIDV2020 · 2018. 5. 7. · 20-04-2018 © Elene Totibadze From the land acquisition to...

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