| Ukraine - Strategic Market for Georgian Beverage Producers |
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06/04/2010 15:25 (668 Day 18:23 minutes ago) | |||||
The FINANCIAL -- Ukraine is named the most strategic market by Georgian beverage producers Teliani Valley, Bagrationi 1882 and Borjomi, followed by Kazakhstan, Baltic countries and Azerbaijan. For Tbilvino the main target market is Kazakhstan.
Tbilvino exports 90% of its total production to foreign countries.
“25% of total exports are from Kazakhstan. Moreover, this year we are expecting sales of 500,000 bottles in Kazakhstan only,” said Beka Khergiani, Export Manager at Tbilvino.
“Demand for Georgian wine and awareness for the product is quite high in the so called Russian language markets.
As for other markets, we are actively engaged in conducting marketing activities for attracting and satisfying Czech consumers by offering products of high quality and price,” said Khergiani.
Georgian Water and Power Company exports 64% and the remaining 36% stays in Georgia.
“The fact that Borjomi is the leader within imported natural mineral water in CIS and Baltic countries is governed by brand awareness of the products, its quality, its authenticity and history,” said Nitsa Cholokashvili, Public Relations Manager at Georgian Water and Power Company.
“It is hard to specify what part of total production and sales comes from exports, as there are constantly changes in demand for the different types of products and the capacity of exporting products differs from year to year,” said Eka Javakhia, Export Sales and Marketing Manager at Teliani Valley.
20% from total production of Bagrationi 1882 is realized in exports, according to Lika Kapanadze, the Public Relations Manager of Bagrationi 1882.
The FINANCIAL interviewed the beverage producers for the threats and problems they faced while engaging in international business.
“The main difficulties were associated with finding strong, experienced and reliable partner companies in foreign markets, by whose support we would import in the markets and manage our distribution channels,” said Khergiani, Tbilvino.
“The low public awareness of Georgia as a producer country of wine together with the rivalry with local and imported products provides the main problems and constraints in non-post-soviet countries,” said Kapanadze, Bagrationi 1882.
Javakhia has the same view about the problem of low awareness of Georgian wine.
“Georgian wine needs more promotion in the world market, moreover, the price competition provides one of the main difficulties while engaging in international markets,” she added.
“Each country has its own regulations and usually several months are needed for product certification, however after passing these procedures we start transportation.
One of the countries to have been quite problematic was Turkey, however, at present, we have shipped the products and are starting sales there.
The companies are actively engaged in marketing activities for promoting the products in international business.
“Our marketing activities are mainly directed to the popularization of the country and company.
Bagrationi 1882 actively participates in international exhibitions, and periodically invites foreign wine producers to Georgia.
Moreover, we conduct advertising campaigns through the internet, where we actively engage in promoting the company as well as Georgia as a wine producer country,” said Kapanadze.
“Within the framework of marketing activities we have network pricing activities, motivating programmes for managers and wine-tasting for end-customers,” said Khergiani, Tbilvino.
Teliani Valley marketing activities are under the responsibility of their partners in foreign countries.
“We send our product to foreign countries, then occasionally they conduct advertising campaigns or have special offers,” said Javakhia.
“Our sales are diversified and we are not actually oriented on niche markets, especially after Russia imposed the embargo.
We are quite active in our strategic market, where Borjomi has high public awareness, the production line we are actively developing is Borjomi Origine,” said Cholokashvili.
“Our most in demand products are dry red wines, sweet and white dry wines, as well as Chacha and sparkling wine. Export became more active in Canada at the end of the year 2009.
Mukuzani is very popular in the USA and in Wine Spectator it was published that there is low export of Mukuzani, the wine that scored 88 points by specialists. At present, we are focusing on increasing our market share in the USA,” said Javakhia, Teliani Valley.
The main differences between the prices of exported products in foreign countries is on average 10%, the additional price for the products mainly includes the transportation fees.
“The difference in the price of the product is 5-10%, totally depending on the costs of transportation,” said Javakhia.
“The highest prices for Borjomi products are in European countries. The price of the product depends on logistics expenses and the tariffs imposed by foreign countries,” said Cholokashvili.
Kapanadze says that the difference in prices is meaningless and is derived from the specification of the various markets.
“The prices differ according to our pricing politics in the markets, moreover, the marketing activities budget may also vary,” said Khergiani, Tbilvino.
According to Cholokashvili the main rivals for Borjomi in the international business are brands such as Perrier, San Pallegrino as well as local mineral water brands.
Khergiani, Tbilvino, considers Georgian companies Teliani Valley, GWS and Telavis Gvinis Marani its competitors in international markets.
“You can find Georgian mineral water Borjomi in more than 30 countries worldwide. Our company has been operating in international business since 1997. The first countries we entered were former soviet republics,” said Cholokashvili.
Teliani Valley exports to Ukraine , Belarus, Kazakhstan, the UK, USA, Singapore, Poland, Finland, Germany, the Czech Republic, Canada, Baltic states, Belgium, Sweden and Ireland.
“We provide 44 types of wine, however, the quantity always increases. In total we operate in 20 countries including Kazakhstan, Ukraine , Byelorussia, Lithuania, Latvia, Estonia, France, England, Poland, Holland, Sweden, Finland, Germany, Azerbaijan, Uzbekistan, China, Hong-Kong, Canada and the United Arab Emirates,” said Khergiani.
Bagrationi 1882 exports its productions to 6 countries: Ukraine , America, Germany, China, Turkey and Great Britain.
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