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GEORGIAN COFFEE PRODUCER BLAMES ARMENIANS FOR UNFAIR PLAY
Mariam Papidze
The Financial
http://finchannel.com/Main_News/Business/97601_Georgian_Coffee_Producer_Blames_Armenians_fo r_Unfair_Play/
Nov 14 2011
Georgia
The FINANCIAL -- Kazbegi Coffee, owned by one of the most popular
beer manufacturing companies in Georgia Kazbegi, has stopped packaging
Georgian coffee.
Company Director Vaja Burduli blames Armenian importers for
monopolizing the Georgian market. Burduli says that since his country
has no antimonopoly regulations, local production is experiencing
a downfall.
"All money and income goes to Armenia. Since entering the Georgian
market, they have swallowed up the whole market. They have occupied
almost the whole market and don't let another company have an equal
go at the market," said Vaja Burduli.
Burduli says that Armenians do not play fairly.
"They used to go to the markets and spread rumours that we produce bad
quality coffee. I have tried negotiating with the Armenians, but all
they have suggested is using the same practices as them. They advised
me to imitate them and that only in that way would I see profit,"
Burduli told The FINANCIAL.
Vaja Burduli is afraid that Kazbegi Coffee is on the edge of
bankruptcy.
"Our business has gone downhill massively. Now we're trying not to
lose the money that we originally invested in this business. We're
trying to at least make back this money. We are not even thinking
about a profit. Now we're waiting for a new party of raw materials. I
know that the profit will be low, but there is no alternative. We have
taken a loan from the bank and we have to pay for it. It was expensive
to open the enterprise. Machines are expensive, coffee is expensive.
Importing one container costs 60,000 USD," said Burduli.
As the Director of Kazbegi Coffee said, real coffee is not being sold
on the Georgian market. "When coffee costs 80 Tetri per 100 grams,
it means that the coffee isn't good, the coffee has some additional
ingredients in it. Our coffee is pure. We sell our coffee for 1.20-1.50
GEL. How can we get a profit though, when we sell expensive coffee
at such low prices?" stated Burduli.
Since 2005 there has been no antimonopoly service or legislation
in Georgia. From 2010 the Free Trade and Competition Agency was
cancelled by the Ministry of Economy and Sustainable Development. As
the Ministry's representative told The FINANCIAL, they don't know
if there is another structure currently regulating the market. "We
know that the agency and antimonopoly service don't work in Georgia
any longer.
Still, there is no company or service which is in charge of such
duties. We don't interfere in private business development," said
the representative of the Ministry.
"Now we are in the process of reorganization. We aren't allowed to
interfere in private business anymore or to research the problems
or issues. According to the new law, we're only responsible for
supervising state organizations," said the representative of the
former Trade and Competition Agency.
In 2009 the head of the Consumer Federation of Georgia, Madona Koidze,
publicly stated that Armenian-made coffee sold in Georgia is harmful
to one's health. She said that a laboratory examination proved
that 12 brands of coffee, including Armenian ones, do not meet the
prescribed standards. "The main problem with Armenian coffee is that
it has low humidity and caffeine content. People buy coffee because
of the caffeine and if the coffee doesn't contain caffeine it means
it is of low quality," said Koidze.
"After our research people stopped buying Armenian coffee and Armenians
left the market. Perhaps they have returned to the Georgian market,
but under a different company name," she added.
According to the data of the National Statistics Office of Georgia,
the quantity of Armenian packed coffee imported in Georgia has been
reduced since 2009. 1,184.3 tons of coffee was imported from Armenia
in 2009 and only 679.2 in 2011.
As Vaja Burduli said, Kazbegi Coffee is the largest company packaging
Georgian coffee in the country. The company has been working on
the market for ten years already. When Kazbegi Coffee worked at
full capacity it produced 1 ton of Turkish coffee per day. The most
successful production results and profit the company saw was in the
years 2000-2004.
Kazbegi was importing raw materials from India. The only supermarket
network which sells Kazbegi Cofee today is Goodwill. It cooperates
with Kazbegi Coffee and has been selling its production in Goodwill
branches since 2009. Kazbegi Coffee has Goodwill's logo on its package.
"Those who love Turkish coffee should buy Georgian packed coffee
because of its low price. The prices vary from 1.35 to 1.95 GEL. About
60 packages of Georgian coffee are sold in Goodwill. As well as Kazbegi
coffee, we sell other Georgian packed coffees, such as Tbilisi and
Favourite," said NATO Darchiashvili, PR Manager of Goodwill.
From: Baghdasarian
Mariam Papidze
The Financial
http://finchannel.com/Main_News/Business/97601_Georgian_Coffee_Producer_Blames_Armenians_fo r_Unfair_Play/
Nov 14 2011
Georgia
The FINANCIAL -- Kazbegi Coffee, owned by one of the most popular
beer manufacturing companies in Georgia Kazbegi, has stopped packaging
Georgian coffee.
Company Director Vaja Burduli blames Armenian importers for
monopolizing the Georgian market. Burduli says that since his country
has no antimonopoly regulations, local production is experiencing
a downfall.
"All money and income goes to Armenia. Since entering the Georgian
market, they have swallowed up the whole market. They have occupied
almost the whole market and don't let another company have an equal
go at the market," said Vaja Burduli.
Burduli says that Armenians do not play fairly.
"They used to go to the markets and spread rumours that we produce bad
quality coffee. I have tried negotiating with the Armenians, but all
they have suggested is using the same practices as them. They advised
me to imitate them and that only in that way would I see profit,"
Burduli told The FINANCIAL.
Vaja Burduli is afraid that Kazbegi Coffee is on the edge of
bankruptcy.
"Our business has gone downhill massively. Now we're trying not to
lose the money that we originally invested in this business. We're
trying to at least make back this money. We are not even thinking
about a profit. Now we're waiting for a new party of raw materials. I
know that the profit will be low, but there is no alternative. We have
taken a loan from the bank and we have to pay for it. It was expensive
to open the enterprise. Machines are expensive, coffee is expensive.
Importing one container costs 60,000 USD," said Burduli.
As the Director of Kazbegi Coffee said, real coffee is not being sold
on the Georgian market. "When coffee costs 80 Tetri per 100 grams,
it means that the coffee isn't good, the coffee has some additional
ingredients in it. Our coffee is pure. We sell our coffee for 1.20-1.50
GEL. How can we get a profit though, when we sell expensive coffee
at such low prices?" stated Burduli.
Since 2005 there has been no antimonopoly service or legislation
in Georgia. From 2010 the Free Trade and Competition Agency was
cancelled by the Ministry of Economy and Sustainable Development. As
the Ministry's representative told The FINANCIAL, they don't know
if there is another structure currently regulating the market. "We
know that the agency and antimonopoly service don't work in Georgia
any longer.
Still, there is no company or service which is in charge of such
duties. We don't interfere in private business development," said
the representative of the Ministry.
"Now we are in the process of reorganization. We aren't allowed to
interfere in private business anymore or to research the problems
or issues. According to the new law, we're only responsible for
supervising state organizations," said the representative of the
former Trade and Competition Agency.
In 2009 the head of the Consumer Federation of Georgia, Madona Koidze,
publicly stated that Armenian-made coffee sold in Georgia is harmful
to one's health. She said that a laboratory examination proved
that 12 brands of coffee, including Armenian ones, do not meet the
prescribed standards. "The main problem with Armenian coffee is that
it has low humidity and caffeine content. People buy coffee because
of the caffeine and if the coffee doesn't contain caffeine it means
it is of low quality," said Koidze.
"After our research people stopped buying Armenian coffee and Armenians
left the market. Perhaps they have returned to the Georgian market,
but under a different company name," she added.
According to the data of the National Statistics Office of Georgia,
the quantity of Armenian packed coffee imported in Georgia has been
reduced since 2009. 1,184.3 tons of coffee was imported from Armenia
in 2009 and only 679.2 in 2011.
As Vaja Burduli said, Kazbegi Coffee is the largest company packaging
Georgian coffee in the country. The company has been working on
the market for ten years already. When Kazbegi Coffee worked at
full capacity it produced 1 ton of Turkish coffee per day. The most
successful production results and profit the company saw was in the
years 2000-2004.
Kazbegi was importing raw materials from India. The only supermarket
network which sells Kazbegi Cofee today is Goodwill. It cooperates
with Kazbegi Coffee and has been selling its production in Goodwill
branches since 2009. Kazbegi Coffee has Goodwill's logo on its package.
"Those who love Turkish coffee should buy Georgian packed coffee
because of its low price. The prices vary from 1.35 to 1.95 GEL. About
60 packages of Georgian coffee are sold in Goodwill. As well as Kazbegi
coffee, we sell other Georgian packed coffees, such as Tbilisi and
Favourite," said NATO Darchiashvili, PR Manager of Goodwill.
From: Baghdasarian