Business news from Ukraine

Business news from Ukraine

Number of wine producers in Ukraine has exceeded 180

The number of wine producers in Ukraine currently exceeds 180, with a significant increase in the number of small-scale winemakers, according to Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture.

“Today, Ukrainian winemaking is no longer limited to the domestic market. It is becoming part of a global dialogue—an instrument of cultural diplomacy and trust in Ukraine around the world,” he wrote on Facebook.

The deputy minister expressed confidence that it is important to foster a culture of consuming domestic products in Ukraine. It is through specialized venues that Ukrainians can better appreciate the quality and uniqueness of domestic wine.

Vysotsky noted that a series of deregulatory measures has contributed to the industry’s development. In particular, the annual fee for a wholesale trade license for small producers was abolished, and an affordable production license was introduced. In addition, the government simplified licensing procedures, abolished excise tax stamps, and reduced the bureaucratic burden of reporting. These changes gave a boost to the development of craft winemaking in particular.

The Deputy Minister also announced that the first official wine boutique—Wine of Ukraine—has opened in Kyiv, which will serve as a platform for direct access to products from producers. The opening was attended by representatives of the diplomatic corps of Italy, Portugal, Argentina, Egypt, India, Pakistan, and other countries, as well as international organizations, including the FAO.

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Wine consumption in Europe will decline – forecast

The European Commission expects wine consumption in Europe to decline by 0.9% annually over the next nine years, according to a report by the EC cited by the newspaper Le Figaro. According to the document, by 2035, wine consumption by European citizens over the age of 16 will decline from 21.2 liters per capita per year to 19.3 liters.

According to the International Organization of Vine and Wine, the main consumer of wine in Europe is France, followed by Italy, Germany, and Spain. According to a 2023 study by the Vin et Societe association, wine consumption in France has already declined significantly: while in the 1960s the figure was 127 liters per capita per year, the latest data shows that per capita consumption in France is now 40 liters per year.

The EC explains this trend by the fact that “consumers are concerned about their health, and also because national policy calls for moderate alcohol consumption.” In addition, the decline in consumption may be due to “changes in consumer habits and preferences.” Also, preference is often given to quality rather than quantity.

 

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During war, about 70 new wineries appeared in Ukraine

During the war, about 70 new wineries appeared in Ukraine, which was made possible by significant improvements in legislation, according to Volodymyr Pechko, head of the Association of Gardeners, Winegrowers, and Winemakers of Ukraine.

“Over the past 4.5 years, thanks to improvements in legislation and climate change, we have seen a 70% increase in the number of wineries… The approximate figure is around 70 new enterprises. They have come out of the shadows, started paying taxes, and officially hired people. Small châteaux have begun to develop in Ukraine. There have never been small wine-producing enterprises in Ukraine, either during the Soviet era or since the country became independent,” he said at the Agro2Food exhibition.

The head of the industry association recalled that previously, in order to obtain a license to produce wine, it was necessary to pay about UAH 500,000. After the transition to a simplified registration procedure for wine-producing enterprises, this procedure became more affordable, and anyone who wishes to do so can obtain a license in two weeks.

After the boom in the creation of small domestic châteaux began, according to the expert, winemakers began to lack raw materials and, accordingly, vineyards.

According to Pechko’s estimates, there are currently about 20,000 hectares of vineyards in Ukraine, of which 5,000 hectares were planted during the war. These statistics do not take into account the occupied territories in Crimea, Kherson, and Mykolaiv regions.

The head of the association said that global warming has given Ukrainian winegrowers the opportunity to plant vineyards in regions that are not typical for viticulture. As an example, he cited the Kyiv region, where about 10 licensed wine-producing enterprises operate. They grow their own raw materials in the Kyiv region and purchase the necessary volumes in the Odesa and Mykolaiv regions.

Domestic winemakers, he noted, are forced to actively import foreign alcohol, mainly from Moldova and Georgia, where viticulture is more developed.

Pechko also said that the creation of an isotope analysis laboratory in the Odesa region had a positive impact on the industry. It allows enterprises to check the wine material from which factories produce higher quality products.

“Thanks to the revitalization of processing enterprises, grape growing has become profitable. While in 2023 the cost of 1 kg of grapes for processing was 5-8 UAH, in 2024-2025 it reached 18-25 UAH, which stimulated the planting of vineyards,” the expert noted, adding that Ukrainian wine exports are still low.

“It is too early to say that we are great exporters and ready to conquer Europe. We need to do this, but we need to protect our own market more. We need to make high-quality products and compete with them in Ukraine,” concluded the head of the Association of Gardeners, Winegrowers, and Winemakers of Ukraine.

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Winemakers in Odessa region can apply for grants from FAO

From October 28 to November 17, 2025, grape growers and winemakers in the Odessa region can apply for grants from the Food and Agriculture Organization of the United Nations (FAO) in cooperation with the Ministry of Economy, Environment and Agriculture of Ukraine, with financial support from the Italian government.

According to information on the Ministry of Economy website, winegrowers and winemakers registered in the State Agrarian Register (SAR) who cultivate between 0.5 and 20 hectares of vineyards in the Odessa region are eligible to participate in the program.

Selected participants will be able to receive grant support ranging from $10,000 to $25,000. The amount will depend on production volumes and justified needs.

The new FAO program aims to develop Ukraine’s wine sector by expanding access to modern equipment, quality planting material, and technical support, as well as introducing market-oriented approaches that will ensure the sustainable development of small producers.

According to Shakhnoza Muminova, head of the FAO Office in Ukraine, quoted in the ministry’s publication, the initiative is a step in the long-term cooperation with the Ukrainian government to strengthen the rural economy and restore value chains in the agri-food sector.

The program also provides for technical support, training, and consulting, as well as assistance in implementing a system of protected geographical indications to increase the competitiveness of Ukrainian wines in domestic and foreign markets.

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Global wine consumption decreased by 12% in 2024 – Knight Frank

Wine consumption in the world in 2024 decreased by 12% compared to the peak level of 2007, according to a report by Knight Frank.

At the same time, “some of the world’s key wine regions were not affected by this decline.”

The vineyards of New Zealand suffered the most. For example, in the Marlborough region, their value fell by 33% last year from a historic high in 2023, said Kurt Lindsay of Bayleys, Knight Frank’s partner company in the local market.

The value of vineyards in the Los Carneros region in California’s Napa Valley fell by 15% in 2024 compared to the previous year, in Australia’s Barossa Valley and France’s Côte du Rhône region – by 10%.

Wine production has decreased by about 20% over the past 20 years, according to Knight Frank. At the same time, many winemakers still have excess stocks, the Financial Times reports.

According to Lindsay, excess stocks in Marlborough, New Zealand, have led to a decrease in the cost of bulk wine (shipped in large containers and bottled at the destination) from 7 New Zealand dollars ($3.9) to 3 dollars per liter.

In Chile, the price of Pais grapes for balloon wine fell to $0.09 per kg last year, which is about half the cost, says Miguel Torres chief winemaker Eduardo Jordan.

At the same time, premium grape-growing areas, including French Champagne, have retained their value, the FT writes.

In the British Essex, the value of vineyards jumped by 20% in 2024, according to Knight Frank.

Vinos de La Luz acquires Ukrainian wine brand 46 Parallel

Anna Gorkun, the founder of the premium Ukrainian wine brand 46 Parallel, has signed the first M&A agreement in the Ukrainian wine industry in the last 15 years and attracted an investor – the international group of companies Vinos de La Luz, which is known for its wineries in the USA, Argentina, Spain and Italy.

“A little less than a month ago we signed an agreement under which all 100% passed to the new owners – Vinos de La Luz, a group of companies that owns production facilities in the USA, Argentina, Spain and Italy. This is a significant event not only for the company itself, but also for the Ukrainian economy as a whole. The very fact that during the war a foreign investor acquires Ukrainian business and intends to develop it exactly in Ukraine, with a Ukrainian team and supporting the philosophy of the brand to remain Proudly Ukrainian is a victory and a huge achievement,” Gorkun wrote on Facebook.

She noted that thanks to the agreement, the trademarks of 46 Parallel Wine Group (in particular, Grand Admiral, El Capitan and Apostrophe) are now part of the global portfolio of Vinos de La Luz, which has more than 100 years of history of wine production.
46 Parallel Wine Group is incorporated in 2019 in Kiev. Under Gorkun’s leadership, the company’s wines have won more than 115 medals at reputable international and national competitions. The company also represents Ukraine on the world stage, in particular at the Wine Museum in Bordeaux (France). At the time of signing the agreement, the company’s products were represented on the markets of Ukraine and Japan.

According to Opendatabot, the company’s revenue in 2023 amounted to UAH 5.473 million, which is 1.8 times less than in 2022 and 3.4 times less than pre-war 2021. Net loss in 2023 amounted to UAH 698.3 thousand compared to UAH 2.64 million net profit in 2022. The company’s assets in 2023 decreased by 23.3% to UAH 9.464 mln, and debt obligations by 33.3% to UAH 4.35 mln. The authorized capital is UAH 845 thousand.

The beneficiary of the company since December 2014 is Natalia Burlachenko through Big Wines LLC, which owns 100% of shares of Parallel Wine Group LLC 46.
Vinos de La Luz is an international group of companies with its own wineries in the United States, Argentina, Spain and Italy, with more than a century of experience in winemaking. The group actively develops wine brands of different origins and is present in numerous global markets.

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