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Russian Crisis to Hurt Georgian Water Exports

In 2014, exports of mineral and spring water amounted to $ 137.1 million which increased by 28% compared to 2013. Out of this, products worth $ 66.4 million were exported to Russia, while exports to Russia increased by 97% compared to 2013.

Accordingly, Russia’s share in the country’s total exports of the mineral waters reaches 48.4%.

The public has long known about the financial and economic crisis in Russia – a depreciated ruble and the EU and US sanctions imposed against Russia.

Consequently, despite the fact that the companies do not talk about it, it is expected that  the current crisis will be reflected in the local companies involved in  exports to this country.

What are the companies’ expectations  – whether they expect the crisis to affect their business? Whether they are going to  search for  alternative markets? – “Commersant” talked to several companies, who is engaged in exports to Russia.

Margebeli Tskali company (Healthy Water)  (Nabeghlavi and Bakhmaro manufacturer) points out that despite the fact that the Russian market opened in 2013, the major water companies entered  this market in 2014 , including Margebeli Tskali  which resumed exports in 2014 after the 2006 embargo.

The company notes that it is gradually developing and is not focused only on the  Russian market. Thy are  developing markets, where they are represented, including Russia.

Tskali Margebeli  also notes  that 15-20% of the products manufactured  in Georgia are exported to Russia.

As for future plans, Tskali Margebeli  expects  the dynamic development, but the financial problems in Russia and the local currency depreciation impedes development, and therefore it’s difficult to predict.

According to IDS Borjomi (Borjomi, Likani, Mitarbi,  Borjomi springs and  Bakuriani manufacturer), the company has carried out exports to Russia since 2013, after the opening of the market. Russia’s share in the total export volume totals 30 – 35%.

As for the company’s export policy, as they say, one of the directions of the company’s business strategy is markets diversification.  Therefore, sales are distributed between strategic and less strategic countries.

Strategic countries include  the post-Soviet countries, such as Ukraine, Russia, the Baltic states, Kazakhstan, Azerbaijan, etc.

IDS Borjomi products are represented in more than 40 countries of the world.