A pair of Ukrainians opened what they claim is Europe’s largest wine supermarket in Kyiv’s Pechersk District
A pair of Ukrainians opened what they claim is Europe’s largest wine supermarket in Kyiv’s Pechersk District, Good Wine, late in December to tap into growing demand for top-quality wines.
In 2007 alone, wine sales in Ukraine rose about 30 percent, experts said.
“The idea is to make our supermarket a destination store for middle- and upper-class customers, offering a wide range of quality product at a good price,” said Dmitry Krimsky, a co-owner of Good Wine along with partner Vladimir Shapovalov.
Located at 9 Mechnikova Street, Good Wine offers more than 3,000 imports, starting from Hr 29 (about $6) per bottle and averaging between Hr 100 and 200 ($20 and $40). Traditional French and Italian wines dominate the product list, but Chilean, Australian and even African wines are available.
Popular Ukrainian, Georgian and Moldovan wines aren’t sold since “their quality doesn’t fit the store concept,” Krimsky said.
While sales of domestic and CIS wines continue to dominate the market, demand will shift as incomes rise and a wine culture grows, said Dmytro Sydorenko, president of the Association of Sommeliers of Ukraine.
Good Wine’s distinction isn’t limited to its imported wares.
The supermarket has 1,200 square meters of retail space, as compared to between 200 and 400 square meters at the average Good Wine outlet, said Sergey Gusovsky, a Kyiv restaurateur and wine expert.
“Our policy is to make profit not with high prices, but with high sales volume,” Krimsky said.
“We are proposing high quality goods at fair prices, which will result in profits within five to six months.”
Good Wine’s business model may prove risky for Ukraine, with its success dependant on aggressive price policies, experts said.
“If the prices remain rather low compared to wine boutiques, as they are now, then the store will be able to build a loyal customer base and stable profits,” said Olga Nasonova, director of Restaurant Consulting agency.
The partners didn’t disclose the cost of their investment. Good Wine is among several wine ventures pursued by the Wine Bureau import company, which allows for simplified importing and lower prices.
Good Wine relies on Kyiv’s wine importers for 65 percent of its stock, though the company plans to import itself in order to reduce prices, Krimsky said.
The store will open a wine bar, wine-tasting hall and deli, and eventually the company plans to build several wine supermarkets off Kyiv’s major highways.
A major obstacle remains high import duties, about $3 per liter.
“Ukraine’s entry into the WTO will most likely decrease import duties on wines and decrease shelf prices as a result, which in turn will considerably reinforce the competition between local and import products,” Krimsky said.
