The FINANCIAL — In 2008, after a break of four centuries, the historic wine cellar situated at the territory of the 16th century Alaverdi Church will restart wine production. The wine cellar reconstructed by Badagoni wine company will produce 25 000 bottles of the company’s new brand. The FINANCIAL interviewed Liza Bagrationi, Badagoni PR Manager, regarding the Georgian-Italian wine company’s further development strategy for the year 2008.
Q. New Year celebration is as a rule associated with alcoholic drinks. Which of the Badagoni brands are sold during the Christmas and New Year period most? Do you have any special offers like exclusive limited editions for the year 2008?
A. One of the most important developments for me is the release of Badagoni’s new brand by the Alaverdi clergy. Starting in 2008 the church will restore the ancient tradition and after a four century break will again start the production of wines. Thanks to the support of Mr Donato Lanati, our Italian shareholder, the Alaverdi wine cellar has been equipped with the highest-quality advanced technologies, just the analogue that the company has at its own modern-class factory in Kakheti.
This year the church produced its very first vintage and harvest since the reconstruction. In 2008 the Alaverdi clergy will produce 25 000 bottles of Badagoni’s new brand, the name of which will be announced in the close future. In addition we’re also engaged in offering several new brands as well but the Alaverdi news remains the top issue for Badagoni in the next year.
In addition Badagoni will contribute to the depository of antiquity construction at the Alaverdi church territory. We’ve also been involved in renovation works of the Alaverdi church gate. Thanks to the Badagoni assistance new bells are ringing at the church after 80 years of silence.
Q. The Badagoni wine company was founded in 2002 in Georgia’s principal winegrowing region Kakheti. Since then Badagoni claims to be a great success thanks to a range of local brands. Which of the Badagoni brands have been best-sellers in the local and international markets in 2007?
A. Saperavi has been the best seller red wine brand and Tsinandali- the white one, in 2007 in terms of local realization. As for export statistics, the West: Canada, Italy, Benelux countries prefer dry red wines whereas post Soviet Union countries can’t forget the old familiar flavours of: Kindzmarauli, Khvanchkara, and Mukuzani as well as Tsinandali and Saperavi.
Q. Which new markets has Badagoni acquired in 2007? How impressive is the overall spectrum of export countries?
A. In 2007 Badagoni export countries included: Poland, Canada, Benelux countries, Italy, Sweden and the post Soviet markets: Ukraine, Kazakhstan, Kyrgyzstan and Belarus.
In 2008 our target export countries will be: Norway, Slovenia, Croatia, Switzerland, the U.S.A and Japan. So far the latter was familiar only with GWS Georgian wines. Though the Japanese have become very interested in Badagoni wines and by their initiative we’ll participate in a large-scale international wine expo in Tokyo in March 2008.
Q. Badagoni’s been running a rather impressive advertising campaign of TV commercials with well-remembered Italian slogans and a well-known Georgian celebrity. What’s the company’s advertisement policy abroad especially while entering new markets?
A. Our strategy in terms of advertisement campaign organization abroad envisions a partnership with particular distributor companies and in case they get responsible for the complete placement of Badagoni wines at local sales areas, we do provide assistance by means of providing them with direct ready-made advertising material.
Sometimes we bring very interesting national concerts and specially prepared videos to the new markets in order to get the local population familiar with Badagoni wines in a rather entertaining way.
Next year we’ll have a very attractive Badagoni stand on the ground floor of Tbilisi International Airport and since the great interest of the airport’s officials the Badagoni analogue stand might appear at Turkish airports also constructed by TAV.
Q. Which advertising company do you cooperate with?
A. Georgian Studio 123 led by Basa Potskhishvili and Tamriko Potskhishvili and Italian Lemani- these are the two advertisement companies that stand behind the prestigious local and international image of Badagoni.
We are trying to maintain the respected image of the company and keep as active as possible in terms of promoting the new developments at Badagoni.
Q. What is Badagoni price policy in Georgia and abroad? How different are local and international prices?
A. There is no big difference in the price policy in local and international markets. Although while exporting abroad there are some additional customs fees charged.
The most expensive brand by Badagoni is the Kakhetian Noble produced by Mr Lanati’s direct involvement, which costs GEL 38 and the cheapest- Alazani Valley- GEL 6.
It’s not the price factor that conditions the sales activity of a particular product however, as people seem to just catch specific features about a product itself and therefore make it a favourite one. As a rule while tasting foreign wines even experts can hardly tell which winemakers the wines come from, the only thing they can judge is the quality of the product whereas Georgian wines are well-known for their distinctive assets. Badagoni brands, from unique Georgian wine varieties and finally produced by modern Italian technologies, are regarded high quality wines with no analogue flavour.
Q. How can the company’s forward-looking philosophy help the awareness of Georgian wine varieties in the west as new markets have become an issue of constant discussion since the Russian embargo on Georgian wines?
A. The Badagoni wine factory was opened in parallel to the Russian embargo activation. Hence, it was not a post-factum development and neither our Georgian or Italian shareholders relied any hopes on the Russian market. Our mainstream commitment was to build a modern standard factory and produce high quality wines that would be equally desired by local and international populations.
Q. What actual direct steps have Donato Lanati and his renowned Enosis made in building Badagoni’s success story?
A. In addition to the huge amount of direct investments provided in the construction of the factory in Kakheti, our Italian partners have financed the company’s intellectual development to a great extent as well. Badagoni staff are constantly sent to various wine companies for trainings abroad.
Italians are in charge of Badagoni quality monitoring as well. On one side you see a well designed bottle of wine that on the other hand should be filled with subsequently high quality liquid.
The wines of Badagoni were awarded several medals at various national and international competitions and certificates of standards: ISO 9001:2000, ISO 22000:2005. Last but not least, Badagoni received two gold medals at the Polagra 2007 expo in Poland. Badagoni Europe was founded in June 2007 and has big perspectives ahead of it.
Q. Badagoni producing around 2 million 500 000 bottles of wine annually claims to be the largest wine factory in the Caucasus. What’s the company’s share in the local market?
A. Badagoni occupies around 20% of Georgia’s market share which is quite an accepted figure for the company with only one year of operation.
I think the fact that all the players in the market feel sympathy and respect for one another and never dare to play hardball is because we’re all in love with Georgian wines and try to do our best to dispose of our capabilities.
Q. Does the company plan to provide further investments in the expansion of its vineyards?
A. Badagoni possesses 300 hectares of vineyards in almost all the micro zones. Instant investments are made in the infrastructure development process of these areas. A great effort is made in order to get the high quality final product that our end users deserve and what Badagoni is known for.
This year we bought 700 tonnes of grapes from Kakhetians.
Q. Badagoni wine factory was accused of producing low-quality products. How negatively did the fact influence on the image of a newly opened company?
A. It’s no wonder that company officials felt such disappointment and anger. However when the case was settled in Badagoni’s favour and it was proved at a number of laboratories that our products were far from that wicked accusation, the company’s image was rehabilitated at once.
Today we try to never remember that unpleasant time from the past, we just do our job and plan a healthy and prosperous future together.
Q. Tsinandali, Mukuzani, Saperavi, Kindzmaraeuli, Akhasheni, – what’s your favourite brand offered by Badagoni product line?
A. My favourite is the white wine Tsinandali and also Mukuzani red wine if I happen to be having a drink at a traditional Georgian Supra, though I just love Kindzmarauli at Furshets.
Q. What could be the message to foreign investors interested in getting wines directly from the country known as the cradle of wine – Georgia?
A. Georgian wines are unique and the best is Badagoni!
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