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Everyone is probably wondering how to claim excise tax marks for cider or other fermented beverages. For this, first of all, you need to register on the website of the Revenue Service, from where you can follow this instruction.

To order an excise tax marks, first of all, you must enter the portal of the Revenue Service and request the following in your personal dashboard: Changes / additions to the selected person’s electronic database

Also, be sure to see the attachment of Article N275 of the order of the Minister of Finance: LINK

To fill in the data, consider (Group code: 2206): Code of cider and other fruit wines according to alcohol composition:

• 2206 00 100 02 – with an actual alcoholic level of more than 1.2 vol.% but not more than 5 vol.%.
• 2206 00 100 03 – with an actual alcoholic level of more than 5% by volume but not more than 18% by volume.

The excise duty on cider and fruit wines is as follows (learn more):

To claim excise tax marks you will need to register on the SICPA portal from where you can claim stamps, therefore I am sharing with you the instructions prepared by them (link)

The video instruction includes the following stages:

1. Login to the system
2. SKU registration
3. Ordering stamps/marks
4. Receiving stamps/marks
5. Activation of brands

Please note: If you are requesting excise stamps, you will be required by law to register as a VAT payer. It does not matter whether you have a limited liability company or are registered as an individual entrepreneur. Registration as a VAT payer is possible from the website of the Revenue Service: Registration as a VAT payer/cancellation of registration

See the article about cider label guidelines: link

The category of cider and other fermented drinks is regulated by the National Food Agency, so if you want to label your drink you should consider their requirements, which are mostly common to all food categories.

The business operator is responsible for the accuracy of the food label placed for sale in Georgia. When creating a product label, the following requirements should be considered:

• • The label must be in Georgian. Information must be complete, clear, visible and easy to read;
  • Name and composition should be in one field of view;
  • The label must be attached to the packaged product in such a way that it cannot be easily removed;
  • It is allowed to place a written, printed or graphic image on the label.

The label must include the following mandatory information:

• The name of the product, which should indicate the true nature;
• The list of ingredients must be written in descending order of mass, after the heading “Ingredients” (except when the food contains only one ingredient);
• In the case of compounded ingredients, their list in parentheses with the indication of the composition, in descending order of mass;
• If the content of the ingredient gives specific properties to the product, its initial amount should be indicated;
• If the content of one or more ingredients is less than 5% and gives specific properties to the product, it is necessary to indicate its/their percentage content on the label. If the content of the ingredient is less than 5% and it does not give specific properties to the food, its indication is not mandatory;
• If water is added, it is necessary to indicate its quantity, unless water is a component of the formulated ingredient and this ingredient is presented under its own name in the “ingredient” (eg, brine). It is not necessary to specify water or other volatile ingredients if they evaporate during the technological process;
• In the case of concentrated and dehydrated product, when the mass fraction of the original concentration or moisture is restored by adding water, the composition of the ingredient or ingredients in the restored food must be indicated;
• It is mandatory to indicate in the composition products that cause hypersensitivity (allergic reaction) in some people. Such products include grains containing gluten (wheat, rye, barley, oats or their hybrids), crustaceans, eggs, fish, peanuts, soybeans, milk (including lactose), nuts, walnuts, almonds, chestnuts, Pistachio nuts, representatives of the umbelliferous family and products derived from them, sulfur gas and sulfites, the concentration of which exceeds 10 mg/kg, 10 mg/l;
• Additives used in the “composition”;
• In the case of using a supplement with a technological purpose, it is necessary to indicate the purpose of use;
  If flavoring is used, indication of its type: “natural”, “artificial”, “identical to natural”;
• Net weight (kg, g; l, ml);
• If the product is represented by 2 or more packaged units that are not intended for separate sale, the unit mass must be indicated together with the total mass;
• If the product is placed in a liquid volume (for example, in brine), along with the total mass, it is necessary to indicate the mass of the main product by converting it to dry matter;
• Country where it is coming from;
• Name, address of the manufacturer, appraiser, distributor, importer or exporter;
• Date of manufacture – number, month and year;
• Shelf life;
• For product whose shelf life does not exceed 3 months, the day and month must be indicated and the words “use by … until” must be indicated;
• Storage conditions (if necessary);
• Rules of use (if necessary);
• The inscription “genetically modified organism”, (GMO) if the genetically modified components are more than 0.9% of the total mass of the product. If one of the ingredients is such, then the corresponding reference must be in the composition;
• Quantitative content and energy value of proteins, fats and carbohydrates.

It is not allowed to indicate the terms “biological”, “ecological”, “eco”, “bio”, “organic” and any combination of them on the product label, if the production/manufacturing of the product was not carried out in the manner of organic production.

Introduction

Cider presents a new growth opportunity for Georgia’s economy, and at this stage its promotion is at the initial stage, for example, 2020 “Enterprise Georgia” 30,000 Gel grant program as an acceptable category. Cider is a fermented alcoholic beverage made from apple or pear juice, and is similar in alcohol content to beer.

The cider industry in Georgia is very young, and local production is mostly at home or in small wineries and breweries. Several imported cider brands are already available in markets such as Georgita, Smart supermarkets and Nikora stores. The growth of the industry can be facilitated by the simplification of the tax policy which is quite high compared to other similar drinks.

However, it is important to ensure that the growth of the cider industry is sustainable. The production of cider must not come at the cost of damaging the environment or harming local communities. It is crucial that sustainable practices are integrated into the industry to reduce negative impacts on the environment and promote social and economic development.

Excise taxes on grape wine is 0.00Gel, on beer 0.12Gel and on cider alcohol 5% or more 5.00Gel / 5% less 0.60Gel. Developing the cider industry as a new opportunity for Georgia’s economic market requires continuous research, a unified vision and strategy that provides education, technology and other support programs.

The promotion of the wine sector has shown that a common vision and the right strategy can accelerate rapid development of the industry, such as the creation of new wine brands and bars like ღvino underground, 8000 Vintages, Saamuri Natural Bar and others. Hence, the “Georgian Cider” association was created to develop a proper development strategy, and to unite the private sector, cider, beer and wine enterprises/cellars of all sizes and types, apple farmers, distributors, non-governmental and governmental sectors, and others. The association should prioritise sustainability and ensure that its members adhere to sustainable practices.

Currently, there are small and medium-sized producers in the market such as “Gotsa Marani”, “Dughili Cellar”, “Georgian Cider”, “Shareula”, “Bichikos Cider”. “Cider Club Bazaleti”, “Cider Number 4”, “Skhva Khili”, “Sadmelis Marani”, “Salobie Bia’s Cider”, “Underground Micro-brewery”, “NaturAle” and others. Although there is a small demand on the market for cider, it has grown significantly over the past two years. Local cider consumption is increasing, and globally there is a growing demand for cider, where new brands are expected to appear, including natural and craft varieties. Based on research, there is an equal demand for both sweet and dry cider in Georgia, although in the international market, sweet cider is more popular.

To focus on the growth of cider as a whole category, it is necessary to unify different styles of cider. International brands, mainly those working on mass production, usually make cider from concentrates, while craft manufacturers use apple juice. Although cider can be made from all apple varieties, it is preferable to mix sweet and sour varieties to achieve a variety of flavors. In Georgia, at this stage, the apple varieties available in practice are generally accepted, such as Fuji, Granny Smith, Golden, and others.

On June 3, on the occasion of International World Cider Day, a one-day event was held at “Deda Ena” Park with the help of “Taste Tbilisi“. A pop-up was made by the natural wine bar “Saamuri“, and a tasting of ten local ciders was held. Demand for cider from foreign tourists and local consumers exceeded expectations, and most of the customers were tasting the drink for the first time. By the end of the day, all the producers managed to sell their entire supplies. There was also great interest from various local bars and restaurants.

The demand on the market is increasing every day, but at this stage the local production cannot fully satisfy it. Therefore, more local producers need to emerge, and the existing ones should increase their productivity.

In order to better depict the picture, we have identified seven important success factors:

Tax Regulations Market Access Availability of Apples Education Governmental Support International Support Research and Innovation

Key Challenges and Opportunities

Tax Regulations

Currently, the tax system, such as excise, is more focused on beer and wine, while other fermented beverage categories, including cider, perry, mead and other fruit wines, are not properly accounted for. Moreover, the excise tax is quite high, which actually discourages the creation and development of the Georgian cider industry.

Excise Taxes by Categories:

• Grape Wine: 0.00 Gel
• Beer: 0.12 Gel
• Cider (5% or more Alc.): 5.00 Gel
• Cider (less than 5% Alc.): 0.60 Gel

Market Access

As mentioned earlier, the demand for cider in the local market has increased significantly in the last two years. This is supported by the fact that on our Facebook page, “Georgian Cider“, the demand has increased from many bars, both from Tbilisi, Kutaisi, and Batumi. As for the international market, they expect new cider brands and especially drinks made with different technologies or varieties. All of this will be further intensified by the joint activation of local producers and the involvement of non-governmental and governmental sectors.

Availability of Apples

According to statistical data, 50% of the fruits produced in Georgia are apples, where there are about 100 different varieties, both local and imported. In addition, there are already well-tested apple varieties for cider in the world. Therefore, our task should be to study all these varieties, make experiments, and share all this with the members of the “Georgian cider” association. Management of “unfit apples” should also be done, and apples that are not suitable for the store should be distributed to enterprises where they will be processed, both into juice and concentrate, which we will use to make cider or juice.

Education

In Georgia, there is literally no knowledge about cider, which is necessary for producers, consumers, and representatives of the related field, such as restaurants, bars, and the culinary field in general. We have already heard interest from a number of chefs who want to use cider in their dishes and also create menus suitable for cider. For all this, we want to cooperate with local media and introduce a cider certification program, which we will create based on international practice. The said program is intended for producers, enthusiasts, distributors, chefs, waiters, and those who want to become a real cider specialist.

Governmental Support

As in all countries, it can be safely said that government support plays a decisive role in the development of the industry. There are good examples of this in both local and foreign markets. For example, in Georgia, the Ministry of Agriculture has been actively supporting the planting of modern apple orchards and co-financing programs for storage refrigerators for the last few years. To summarize briefly, state support in some areas is quite strong, and the same boosting is needed for the development of the cider industry. As for the foreign market, we can take Yorkshire, one of the counties of England, which is famous for its apple orchards and many cider factories. In Yorkshire, there is a state program called a ‘mobile juicer,’ which is completely mounted on a car, and an orchard owner can order it to juice the apples directly in the orchard, which can then be sold as apple juice or made into cider. However, the most important thing is that the excise taxes must be revised, which, as we mentioned before, represent a rather large barrier (see the third point).

International Support

The involvement of international organizations is the backbone for the economic growth of all developing countries. In Georgia, these organizations have been very actively involved for years, both in the state and private sector. Thanks to them, many good startups and businesses have been created, and these companies have repeatedly presented their products/services to the international market. All these methodologies and experiences will be adapted to the cider industry, so that Georgian cider will take root in both local and global markets.

Research and Innovation

Research, especially in a new market, simplifies and makes the demand clearer. Therefore, it is necessary to conduct frequent customer surveys to reveal what kind of cider, in which packaging and at what price is acceptable to them. For this, it is necessary to:

• • Develop integrated pest management strategies for healthy trees.
  • Improve harvesting and develop modern new methods.
  • Determine optimal crop yield and production quality parameters, e.g. crop loading/harvesting, fruit size, juice quality control, and more.
  • Understand the relationship between cider juice composition (e.g. sugar, tannins, pectins) on cider flavors and quality.
  • Increase cider consistency by controlling juice composition/mixing.
  • Identify cider-specific yeast strains and propagation methods.
  • Develop alternative conservation methods.
  • Develop efficiencies and cost savings in the cider production process.
  • Develop strategies to enable year-round cider production.
  • Determine the current storage capacity and future needs of Georgian apples.
  • Determine post-harvest apple storage protocols and technologies to maintain cider quality.
  • Define juice storage protocols and technologies for cider preservation.

What Does Success Look Like?

In our opinion, the 10-year plan for the cider industry is:

• Cider producers must cooperate with each other, with apple growers, laboratories, distributors, government and international organizations, large and small, so that unity and a common vision are necessary for the growth of the industry.
• We should understand that the development of the cider industry has a positive effect not only on cider producers but also on all directions included in the cycle that we have listed above.
• Georgian cider production should be the leader in our market compared to imported cider.
• Co-financing and grant programs should be established.
• The local market should have all the supplies needed for cider production.

Excise Tax:

• Taxation of other fermented beverage categories is to be reviewed.
• Cider, like grape wine, may be exempted from excise duty, at least temporarily.

Market Access:

• Georgian cider should first of all grasp the local market, but at the same time, try to enter the export markets, which will be facilitated by the experience of exporting wine and beer.

In conclusion, the cider industry in Georgia is a relatively new and growing market with a lot of potential for development. While the current tax system poses a challenge, with the right research, education, and support programs, the industry can be accelerated. The creation of the “Georgian Cider” association is a positive step in the right direction to develop a unified vision and strategy for the industry. With the increasing demand for cider both locally and internationally, it is important for more local producers to emerge and for existing ones to increase their productivity to satisfy market demand. Overall, there are many opportunities for the cider industry in Georgia to grow and contribute to the country’s economy.

Cider is one of the oldest light alcoholic beverages made by fermenting fruits, mainly apple juice. It is also called apple wine. One can use apples, which is not suitable for food, to make a drink. In many cases, sugar or any other fruit juice is added to regulate the alcohol content during the second stage of fermentation. However, experts believe that apples should be at least 90% of the real cider. British regulation partially takes this view into account and obliges producers to make at least 35% of the apple’s share of the beverage production.

The alcohol content of cider is similar to that of beer, though with its abundant flavors it reminds you more of wine.

European store where cider and beer are sorted together

Cider sommelier Dan Pucci says it’s the perfect drink; With distinct acidity and low alcohol substitution.

Dan Pucci – Cider Sommelier

Thanks to these unique taste properties it is becoming more and more popular all over the world.

At this stage, cider is consumed in the largest quantities in Europe, especially in the United Kingdom, although apple cider is slowly regaining the status of the country’s number one drink in the United States. Where they have already begun rebuilding apple orchards cut down during the dry law.

One of the English cider cellars (made in oak barrels)
According to Rabobank, as a result, cider production will increase by 5% annually and will reach 3 billion liters by 2020.

In European countries you will find apple wine mainly in the beer section. It is bottled in an aluminum jar or glass bottle. It is sold in the same way in clubs, beer or special bars, there are also spaces where you can buy craft cider.

The drink is produced in the region by Turkey, Belarus, Ukraine, Russia and Azerbaijan.

Apples make up 50 percent of the annual fruit harvest in Georgia and its average weight is equal to 200,000 tons. It is on the list of 21 priority products with export potential. However, in reality, farmers are only able to move their produce to post-Soviet countries. In the domestic market, the price of one kilo of apples is about 8 tetri.

Given that we have high quality water, a variety of apple varieties, the quality of which the Ministry of Agriculture has been working on for many years, the ancient culture of winemaking, and unique, pitcher technology Georgia is an ideal country for cider production. Currently only 20 out of 100 local varieties are used for industry. All of them can be used to make cider. The size and color of the fruit are also insignificant for the cider growers, which will allow the peasants and farmers to actually get 100% of the crop.

However, the start of the process is hindered by a law passed during the old government, according to which each liter of cider (in case of 5% or more alcohol) is taxed at 5 GEL. Then the need for this law stemmed from the threat of wine counterfeiting, and now that such a threat no longer exists, it is time for Parliament to start working to change the law. For comparison, according to 2017 data, the excise tax on beer is 12 tetri, while the excise tax on wine is generally free. Consequently logically, cider should not be taxed because it is an apple wine, or taxed as a beer because the alcohol content and consumption are identical. Given that this is a secondary law for Parliament, it will not be so difficult to change it.

“Cider is consumed as a beer, but the brewing process is similar to wine, so winemakers need to understand that cider is not a threat to them, it is a new opportunity,” said Mark Socio, an analyst at Rabobank Beverage.

Indeed, the process of making wine and cider is identical, therefore Georgian entrepreneurs can use traditional technology to get the best quality cider. Especially since apple wine can be made in less busy times of the year, for example after the harvest, which will significantly increase the plant’s resources to smoothly produce grape wine.

Cider made with qvevri technology in the USA

As a result, winemakers will be able to grow cider at least twice a year with seasonal fruits and thus increase production. Jobs will be created, and peasants and farmers will have their problem with the key to apple raw materials completely eliminated.

Cider with different flavours

In return we get a healthy, health-friendly natural product that will be sold both locally or in the post-Soviet market, as well as around the world.

Except for the fermentation (Compering to beer), everything else is different. The only way that the finished product is like beer is that it is closer in alcohol content to beer (between 5% to 8%), and that cider is often carbonated. In every other way it’s exactly like wine: “You pick the fruit, you ferment the juice, and you let the fruit express itself”. Unlike beer, which involves more cooking and recipe development, cider is more about the fermentation process and the expression of the fruit itself.

The process of making craft cider is similar to that for making wine. It starts with tending the trees and harvesting the fruit at optimal ripeness. The apples are washed and then ground and pressed to extract the juice. Fermentation takes place in steel tanks or oak barrels. The fermentations are slow and cool, as with white wine, to retain freshness and aromatics.

BUT:

Commercial cider was first introduced as a slightly fizzy and sweet alternative to beer in the 1980s, and today is marketed and sold much like beer. Companies such as Anheuser-Busch, MillerCoors and Michelob have capitalised on cider’s rising popularity, and their bottling account for the vast majority of cider sales in the U.S. The nearly $400-million-dollar industry saw sales increase from 4.5 million cases sold in 2010 to 23.2 million cases in 2014.

These ciders generally clock in at lower than 7 percent alcohol by volume, and can contain apple concentrate and additives that allow them to be made year-round and sold cheaply.

Craft ciders, on the other hand, take their models more from fine wine. In fact, ciders above 7 percent ABV are considered wine: Like wine, they must have a TTB (Alcohol and Tobacco tax and trade bureau) -approved label but are not required to include ingredients listings. Crucially, they must be derived wholly from apples. However, cideries are not permitted to list appellation or vintage on their labels.

Craft cider reflects a diversity of styles, ranging from beerlike versions that are by turns hopped, smoked and infused, to more winelike ciders, either sparkling (some made with traditional Champenoise methods) or still, as single-apple varietals fermented dry and aged in oak barrels.

Traditional cider—the kind made from 100% fermented apple juice, as it has been for thousands of years in Europe—was America’s first alcoholic drink, and was one of the most popular drinks in the 19th century. But somewhere between Prohibition, urban migration, and the ease at which other drinks, like beer, can be mass-produced, cider earned a reputation as a backwoods drink, or worse, as an “easier” alternative to beer.

Cider continued to be the country’s most popular alcoholic drink through the 19th century until beer surpassed cider in production at the turn of the 20th century. After Prohibition began, many of the orchards were abandoned, and cider never recovered.

William Henry Harrison Campaign (9th U.S. President)

When Harrison ran for president in 1840, cider had so many happy associations that he made it part of his campaign. He passed the stuff out at rallies while supporters sang, to the tune of “Yankee Doodle Dandy”:

With Harrison our country’s won
No treachery can divide her
Thy will be done with Harrison
Log Cabin and Hard Cider!

He totally won.

Fortunately, the United States is in the midst of a cider renaissance and cideries have started opening almost as quickly as breweries in some parts of the country.

Source: https://food52.com/blog/9609-the-history-of-cider-in-the-united-states?fbclid=IwAR2fSlE_RLIzhzUpU4ZOrglYo9S0KvgTsmLjMrCnTuaignF_ZPPaasZ6JVY

Cider making is a popular tradition across Europe.

In France cider or ‘cidre’ is largely a low-alcohol beverage with a mellow full flavour, while further south in Spain citrusy ‘cidra’ is all the rage.

Ever-popular in the UK bars are ciders hailing from Sweden. Made primarily with apples, Swedish ciders come in a whole heap of fruit flavour like apple and blackcurrant, lemon and lime, and mixed berry. These tend to be a lot sweeter than the ones we’re used to.

Pear is also a popular cider flavour among the bottled drinks but that’s not to be confused with Perry. Where pear flavored cider is made mostly with apples, perry is a beverage made entirely with pears specifically grown and harvested for a delicate summery drink.

Cider is very popular in USA and Asian Countries (In Singapore Cider is one of the most popular drinks).

Cider is also produced in Russia, where one of the biggest player is the brand “St. Anton” (http://yablochny-spas.ru/produktsiya/)

The production of crafted cider is growing across Ukraine which started in 2016.

You can find newly emerged local cider pubs such as:

• Tolsty Lev: https://www.likealocalguide.com/kyiv/tolstyi-liev-tolsty-lev
• Trolleybus pub: https://www.likealocalguide.com/kyiv/pab-tralliebustrolleybus-pub
• Cooper pub: https://www.likealocalguide.com/kyiv/cooper-pub
• And many other cider pubs.

Georgian “Kvevri” technology can be used to produce high quality cider !

Example:

One of the most famous winemaker in Virginia (US State) “Castle Hill”, is making 5 star cider with Georgian Traditional “Kvevri” Technology

Source: https://www.amerikiskhma.com/a/american-cider-made-in-georgian-kvevri/4023564.html