The FINANCIAL – The leading Georgian spirit and vodka producer JSC Gomi Spirit and Vodka Company increased its sales during the Russian-Georgian war.
The revenues for the company were USD 4,639,212 in 2006, USD 6,066,662 in 2007 and USD 5,709,799 in 2008.
“In September sales usually rise for our company. This was one of the reasons why sales increased in August and in September. The blockade of roads by Russian troops created a deficit of some products on the Georgian market and vodka was one of them. We had enough supplies though. Another reason why our sales increased was the patriotic call from our citizens to buy Georgian vodka instead of Russian,” said Zaza Tabagari, Consultant in Strategic Planning of Gomi.
3,500,000 bottles of vodka were sold in 2006. After a year the sales figures rose by 500,000 and in 2008 6,000,000 bottles were sold.
According to company representatives Gomi is going to launch new products, such as vodka, sparkling wine and brandy.
On the Georgian market there’s a demand for vodkas that cost between GEL 4-7 .The market share for vodkas falling in this price range is owned by foreign importers.
“There’s a gap in this price range. We are going to offer new vodkas that will be between the price of 0.5L 40%Alc Gomi Original and 0.35L 40%Alc Gomi Classic,” Reported Mr. Tabagari to The FINANCIAL. “The spirit production units don’t need any more investments. As for the vodka distillery, we are going to increase the number of units in the nearest future. Currently we are having negotiations with our contractor Cartu Bank regarding the funds for this new project.”
During the war the company lost one truck. On 13 August on the way from Gomi to Tbilisi the driver was stopped near Gori by Ossetian marauders.
According to Zaza Tabagari the losses during the war amounted to about USD 71,372. This amount includes the transport which was hijacked and also the potential sales which were lost due to the war.
Gomi Spirit and Vodka Company is the legal successor of “Gomi Spirit and Vodka Distillery”, which is located in Khashuri region, village Gomi. The factory started functioning in 1903 using raw materials: wheat, bread, maize and oats.
After World War II, the Gomi factory started the use of sugar beet nectar for production. After this production volume of the factory increased up to 500 DAL. In the next years it increased up to 1,500 DAL per 24 hours. During this whole period, till 1997, the factory aimed at processing only sugar beet nectar and Chacha raw spirit.
In 1994 by the decision of governmental organizations the Gomi factory appeared on the list of privatization units and on the factory’s base Joint Stock Company “Rektifikati” was legally established.
After the privatization, the factory was completely reconstructed and different kinds of construction-montage activities were carried out. The system of two, permanent action four block spirit production equipments (the equipment produces 1,800-2,000 D/L in 24 hours), was completely changed – usage of new technologies facilitated the automatic operation of the equipment
The market share of Gomi today is about 30-40% of the 40%Alc vodkas on the Georgian market.
Europe and USA protested against Russian occupation of Georgia. This protest turned into protest against Russian vodka.
“The Russian occupation of Georgia has hit the Georgian economy. Besides humanitarian aid, another way to help is to buy Georgian products,” said Michal Strozyk from the Polish group Solidarity with Georgia, at a stand in Warsaw’s touristy Old Town.
“We’re going to start a little boycott of Russian vodka,” Georgetown’s Potomac Wines and Spirits owner Steven Feldman told Washington Post this week. He plans to pour a bottle of Russian vodka into the toilet and lock up the rest of his stock until “the Russians leave legitimate Georgian territory, and the Georgian government is satisfied with the final outcome of this thing.”
According to Polskie Radio, Poland’s Labour Ministry plans to open the country’s labour market to citizens of more non-EU countries, including the citizens of Georgia and Moldova. According to the ministry’s estimations, the first workers from these countries could arrive in Poland as early as next spring.
According to the Statistics Department of Georgia, in 2007 793,942 litres of vodka worth USD 4,352,900 was imported to Georgia. In 2007 the biggest four importer countries were Russia with 473,065 litres, Ukraine with 257,003 litres, Kazakhstan with 29,517 litres and Armenia with 15,100 litres.
In January-July 2008 there were imported 714,605 litres of vodka worth USD 4,173,800. The biggest four importers were Russia with 454,411 litres, Ukraine with 223,802 litres, Kazakhstan with 12,336 litres and Armenia with 10,218 litres.
In 2007 there was 166,738 litres of vodka worth USD 1,423,800 exported from Georgia. 94,110 litres were exported to Armenia, 44,918 litres to Azerbaijan, 9,000 litres to China and 8,176 litres to the Netherlands. The rest was exported to Tajikistan, Kyrgyzstan, Germany and Latvia.
In January-July 2008 there were exported in total 347,791 litres of vodka from Georgia. Most of this amount was exported to Armenia and Azerbaijan. 213,709 litres were exported to Armenia and 107,283 litres to Azerbaijan. 3,542 litres were exported to Great Britain and 6,840 to the Netherlands. The rest was exported to Ukraine, Slovakia, Tajikistan, and Kyrgyzstan.
The main exporters in 2007-2008 were JSC Rektifikati, Ltd G.D Spirits,
Ltd Samgori Alko, Ltd Ushba Distillery and Ltd Georgian Import Group.
“We are currently exporting in little amounts. Among importing countries are the USA, Ukraine, Turkey, and Tajikistan. Our exports are not stable. We need to invest more in the logistics department and in the Research and Development department. There are problems in exports, but they are solvable
“The major shareholders of our company are two individuals who are citizens of Georgia. One of them is Dima Dugladze. He started his work as a lab assistant and became the Director of the factory,” the representative of Gomi told The FINANCIAL. “Our shareholders aren’t going to leave Georgia and they are going to increase their investments here.”
The company is currently negotiating with Polish companies on increasing exports. There are ongoing negotiations with Baltic countries too.
During the war the company brought several kinds of products to the schools of Tbilisi where refugees live. This included food, clothes, items of personal hygiene, etc. In the future Gomi plans to actively continue helping these people.
By Levan Lomtadze
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