Investor Presentaiton
47
Private early
stage portfolio
Wine business overview
"
Investment rationale
Georgia is considered the "cradle of wine" with a rich, 8,000-year history of wine-making and home to over
500 unique grape varieties
Georgia's favorable trade regimes (free trade agreements with EU and China) provide potential for export
growth for beverages
20.0
"
Growing urbanization and tourism inflows are raising demand for bottled wine locally
16.0
"
12.0
8.5
8.0
Approximately 27% of the tourism inflows is spent on food & beverages
Strong demand in the Georgia's export markets resulted in a 9% y-o-y increase in volume in 2019, with
export bottles sold reaching a 14 year high of 93 million.
Value creation potential
"
Best-in-class distribution network platform
Grow vineyard base to 1,000 hectares, from current 704 hectares
Georgian wine exports (Bottles, US$ millions)
Export Sales ($US) over past 6 years increased at 8.7% CAGR
144
185
238
203
170
114
98
77
50
36
H
93
2013
2014
2015
2016
■Wine exports (Bottles)
Source: LEPL Georgian National wine agency
2017
2018
Wine exports ($US millions)
2019
19.9
GEORGIA
CAPITAL
Vineyard productivity - 2019 (TON/HA)
At 5.1 tons per hectare, grapes yield is three times lower in the country compared to other top
exporters. However, the yield equals 8.5 tons/ha on average for the large-scale producers
---Georgia - Large-scale producers
8.0 8.3
8.9
9.3
4.0
5.1
4.6 4.9 5.7
0.0
Georgia
Moldova
Source: TBC Capital
Portugal
Wine consumption per capita, liters (2019)
Primarily established
export markets
7.0
3.5 4.6 3.8
1.7
Georgia
China
Ukraine
Source: TBC Capital
Japan
Kazakhstan
Poland
Russia
Spain
France
Russia
Argentina
Chile
Target and emerging
export markets
31.3
26.4 28.0
23.0 24.1
62%
11.9
13.6
USA
Czechia
Netherlands
Germany
UK
Belgium
Ukraine
9.9 10.1 10.1 10.
Turkey
Germany
Italy
New Zealand
Australia
16.5 16.9 17.1
13.3
USA
China
South Africa
Georgian wine bottle sales, by export countries
37%
28%
11%
10%
3%
4% 7%
4%5%
8%6%
8%7%
Russia
Ukraine
Baltics
Poland
Kazakhstan
Country share in Georgian wine export I Country share in our export portfolio
Source: National statistics office of Georgia;
China
Other
Page 44View entire presentation