The FINANCIAL — Gori Baby Feeding Cannery Kula, which produces ecologically clean fruit and vegetable juices, intends to add a new line to its current range of products. The company will soon be producing pure pack juices and doypack plums as well.
Kula ended the year 2012 with profits. The company added new products, compotes, fresh juices, Kula Fresh, and different kinds of fasting products to its assortment in 2012. Additionally, it undertook rebranding of its plum packaging, started exporting its production to new countries, produced canned meat, iced tea and ended the year with profits. Its annual turnover exceeded GEL 5 million for the year, while Kula’s annual turnover in 2011 was GEL 4 million. The company had 45 percent growth in 2011 compared to the previous year.
“These results show that the company is developing every year,” said Vano Goglidze, Director General at Kula. “According to our analysis, with different products Kula holds a 20-60 percent market share in Georgia. As for the juices packaged in glass bottles, its market share is 60 percent and all the juices in total hold a 20-25 percent market share. Our market share in producing plums is 45 percent and in producing compotes – 55 percent,” he added.
Kula was founded in 2009 and entered the market that same year. During the period of its existence, Kula has invested more than USD 42 million in the business.
Gori Baby Feeding Cannery includes several brands at present. The first, Kula, produces ecologically clean fruit and vegetable juices. The other, Kula Baby, produces natural juices for children. Also, Kula Premium, Kula Diabetic, Bio Kula and Kula Kosher.
Q. Which are the most popular products out of all that Kula has to offer its customers?
A. Out of all the juices the most popular types are cherry, quince, peach, pomegranate and blackberry. Out of plums, people like red plum classic the most. And as for the compotes, the most popular ones are cherry, feijoa and quince.
Kula products are bought and appreciated all over the country and all of them enjoy their own level of popularity.
Kula currently process more than 200 products out of which there are 30 sorts of juice, all differently packaged, 15 sorts of jam and vegetable salads, and 13 sorts of plum products.
Q. How important is it for the business to produce ‘bio’ products?
A. Kula is oriented on good quality, bio products. High quality and bio products are important for us because there is a deficit of such products on the Georgian market which leads to many health problems and diseases in the population. Our priority is to produce such products that we and the whole of Georgia can be proud of. As for assessing this issue in terms of doing business, bio products are gradually claiming their proper place in business.
Kula’s products are completely beneficial to the health as they are natural and do not contain chemical additives. Kula products are good for children as well. Kula also produces several kinds of products that are recommended for people with diabetes, as the products do not contain sugar. These products include juices, tomato juice, and compotes without sugar. These products are good for those on special diets too.
Q. How would you assess the export potential of Kula?
A. Kula started exporting to some new countries in 2012. These countries are the UK, Czech Republic and Azerbaijan. This year we plan to start exporting Kula products to Baltic countries, Russia and Kazakhstan.
In general, we export our products to many countries. Among them are Germany, Israel, Poland, the Czech Republic, Ukraine, Belarus, Finland, Armenia and others. We have entered the premium segment in those countries as well. They are satisfied with our quality and we in turn are satisfied with the sales statistics.
Bio products are popular not just in Georgia, but worldwide. We consider Georgia an eco-friendly country and Kula – a producer of bio products with big potential to find its deserving place in the world’s market.
Q. The Ministry of Defense of the United States of America together with the Georgian Government held a symposium where it was announced that Georgian entrepreneurs will have the opportunity to enter the market of 47 billion. Do you have any news on this?
A. We export Kula’s production to America. Negotiations have already started with two other distribution companies. We will try to expand export to the US and start export to Canada as well.
Q. Kula has changed the design of its bottles. How do people like the new bottles and what is their advantage?
A. Since our company experienced significant growth we decided to create our own bottles. The advantage of the new bottles is that they are marked with our logo and therefore falsification is impossible. Customers have had a positive response to our initiative about the new bottles and sales have increased in Georgia as well as abroad.
Q. How many people are employed at Kula and has their number increased recently or not?
A. About 200 people are employed at Kula at the moment. During the peak season we increase employee numbers to 320 people. Each new product of Kula creates additional workplaces for new employees. The majority of our employees are women. We also have internally displaced people working with us.
Q. Kula won the Golden Brand award in the category of favourite brand in Georgian juices. How does this award help the company in terms of sales and attracting more clients?
A. For building relationships with our customers, new and old partners, we use our status as a recipient of Golden Brand awards. Customers and partners choose the company according to its awards and certificates. We are very proud that Kula produces healthy and useful products and that this initiative is recognized by different awards including Golden Brand.
Q. Kula is involved in different kinds of CSR activities. Why is CSR a priority for the company?
A. Kula implements charity projects at different times of the year. Kula helps vulnerable members of society such as internally displaced people, those in poverty, the Union of Blind People of Georgia and others. Kula studies each case carefully before allocating money to help solve the problems accordingly.
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