Friday, March 1, 2013

Russian retailer and Georgian winemakers comment on conditions of product entry to Russian market

01.03.2013. One of Georgian winemakers revealed information in social network that Russia's largest supermarket Sedmoi Kontinent demanded  2 million USD  from his company for selling its  products. According to the entrepreneur, this system is very corrupt in Moscow.

Management of Winery Khareba denies demand of  a fee in exchange for the entry in the Russian retail chains. According to the company’s representative Beka Khergiani, they are holding  talks with  five largest Russian companies and no one demanded  to pay "commission charges" from them. Khergiani notes that  the Russian supermarkets have the same conditions of products entry as in other states of the former Soviet Union. "Nobody asked the commission charges, they have different requirements, regarding prices, which need to be within certain limits," – Khergiani says. However, in her words, many companies impose such a fee, including even Carrefour [editor's note: Carrefour is not operating in Russia - HN].

Sarajishvili also refutes this kind of request from retailers. According to company's Director Elguja Bubuteishvili, they have no information regarding demand of commission payment  from Russian networks, so the disseminated information does not correspond to reality. Bubuteishvili said that the main factor is quality of the product.

How much interest is there  in Russian supermarkets towards the Georgian products? As O'Key, one of Russia's largest supermarkets, commented to Georgian radio Kommersant, they are interested in sales of Georgian products. "Of course, we are interested in Georgian products, especially in mineral water and wine. Mineral water has a good chance of success; wine will face difficulties in taking the niche it had  before the embargo. However, to some extent, Georgian wine will be in demand among Russian consumers, "- O'Key representative explained.

Source (edited)

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