The FINANCIAL — The tea-producing company Geoplant plans for its market share to exceed 14% by the end of the year. According to Mikheil Chkuaseli, CEO of Geoplant, 2013 started with a strong focus on product development issues.
The company introduced a completely new brand – “Ali Sultan” – designed specifically to target the Marneuli, Bolnisi and Gardabani regions, offering black and bergamot tea flavours.
As Chkuaseli said, at the moment the following tea brands are due to be released: premium class Prince Gurieli and Gurieli Herbal Tea, which will enter the market later this year. Geoplant was announced a Golden Brand awards winner this year for the third time.
“The past year has been full of interesting projects and events. In accordance with our corporate social responsibility, we sponsored numerous educational, social and cultural events, also participating in charity campaigns that raised awareness for breast cancer and leukaemia. We believe that social contribution is one of the key elements that define the success of any company in the 21st century,” Chkuaseli said.
“Over the past few years there has been a significant increase in our market share and this trend is continuing. We have been monitoring the statistics since 2007: in 2009 Georgian brands covered just 2 percent of the local market, 98 was occupied by imported tea brands and all of this in a tea-producing country. However, after the introduction of Gurieli and some other Georgian brands the share doubled and became more than 4 percent. 2011 was the year of our first major success, when Geoplant’s market share increased to 12 percent. In order to get a better perception of the Georgian tea market as a whole, we need to address three regions: Marneuli, Bolnisi and Gardabani, which occupy 40-45% of the total Georgian tea consumer market, where imported tea from Azerbaijan has been in the lead position for years; excluding these regions gives us a share of 22-23%. After the introduction of Gurieli Fruit Tea in 2012, we gained approximately 2 percent extra.”
“One of our main goals throughout 2012 was to gain a decent position in the above-mentioned three regions, where tea is a part of the local tradition and culture. We therefore worked carefully on the taste, colour and aroma of the tea, also the branding and launching strategy, and finally in February 2013 we launched the Ali Sultan brand, created specifically for these regions. The launch has been successful so far, we already hold certain positions in that specific market. Our future plans will hopefully also ensure that everything goes according to our forecasts and the total market share of Geoplant by the end of 2013 exceeds 14 percent.”
Q. What is the key to your company’s success?
A. The main motivation for our company has been the major goal of reviving the tea industry in Georgia, for which the turning point was the year 2010, when the factories became fully equipped with modern technology, when highly qualified management was instated at the company and when the brand Gurieli was born. To this day our aim is to develop the Georgian brand of tea to the point that it replaces imported brands. This process has already begun and there is a steady tendency of growth year to year. Our success is measured by our consumers and everything we do is aimed towards meeting their requirements, needs and expectations.
Q. Which of your company’s tea variations sells best?
A. Not just at our company, but throughout the whole of Georgia demand is higher for traditional teas, these being black tea and black tea with bergamot. Despite this however, the world trend and forecasts show that demand for green, jasmine and herbal tea variations will significantly increase over the next decade, which means more opportunities for us.
Q. How many different sorts and brands of tea do you offer at the moment? What are your company’s plans for the immediate future and are you planning to add any new products soon?
A. We offer four brands of tea at this point and two more are in the final phase of their product development. Gurieli provides Black Tea, Black Tea with Bergamot, Green Tea, Green Tea with Jasmine and three Gurieli fruit teas: Berry, Forest Fruit and Subtropics. By the brand Rcheuli there are the four traditional flavours plus Berry and Mint. Georgian Baikhi N36 is designed specifically for export and at this point consists of Black Tea, Black Tea with Bergamot and Green Tea.
Q. Have you increased the number of your plantations? What is the total size of the plantations at the moment?
A. The total size of the plantations at the moment is 1,240 ha of land and plantations in the western regions of Georgia – Guria, Samegrelo and Imereti. Geoplant owns three well-equipped production units in these regions with primary production, blending and packing facilities. Our company currently has 430 employers and an established sales network all over the country.
Q. Which countries do you export tea to and did you enter any new countries’ markets last year?
A. Our teas are exported to the Baltic countries, Europe and other post-Soviet countries. Interest from potential exporters is growing and we are receiving requests from the USA and major Western European countries.
Q. What was the total amount invested in your company last year?
A. In 2008-2012, a total of USD 3 million was invested in the company. This amount was mainly used for the replacement of Soviet-era machinery, maintenance works on the production premises, branding of new products, and the formation of working capital. Nevertheless, a series of direct as well as indirect production costs are still a burning issue, as all factories were essentially constructed during the Soviet era, and require further optimization works.
Q. What does being a Golden Brand winner mean to Geoplant?
A. Since the title is awarded based on various factors including brand awareness, popularity, advertising, PR activities and surveys, Golden Brand is one of the indicators of our achievements throughout the year. The brand “Gurieli” was launched in 2010 and has received this award for three consecutive years, which we think, proves that our overall strategy is a successful one.
