IMD-5-0682 © 2006
Turpin, Dominique; Ogunsulire, Mope
Borjomi is one of Russia’s earliest; best known and well-loved mineral waters. After going through a steep decrease at the end of the Soviet era; the brand was purchased by Georgian Glass & Mineral Water (GGMW) in 1995. Two years later; GGMW hired Frenchman Jacques Fleury— the business turned and in 2001 had restored Borjomi to its former glory. In 2002; venture capital firm; Salford purchased GGMW. Collectively with Fleury; Salford associate; Vladimir Ashurov; directed a further transformation of the business turning it from a local; virtually family-run company into a professional corporate business; and growing yearly revenues from $25 to $125 million; and from 54 to 366 million liters.
Their accomplishment did not go unnoticed. From two multinationals; GGMW received two offers in 2005 to either sell the business; or create a venture. But Ashurov and Fleury consider there is still significant room for growth. The remainder would come from Ukraine and other marketplaces. This case focuses on Russia where GGMW has a three-product portfolio. Fleury and his team are now asking themselves whether; to realize that increase; GGMW should use all three; or rationalize its portfolio and focus on Borjomi Classic; its flagship product?
Subjects: Soft drinks; Water; Bottled water; Retail; Retail trade; Marketing; Brand management; Russia; Georgia; CIS; Packaged water; Borjomi; Mineral water
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