Business Development Plan for Bodbe Wine and Brandy Production Company

The project’s objective was to provide Bodbe, a wine and brandy producing company, with an efficient business plan and further consultations. The cooperation was aimed to develop Georgian enterprises operating in this industry and is being successfully used in the negotiation process with foreign investors to gain direct investments.

As a result of the cooperation, consultants from Policy and Management Consulting Group (PMCG) and Agro Business Management Group, a spin-off of PMCG, prepared a results-oriented financial model for the two separate directions (wine and brandy) and also conducted consolidated financial analysis for the whole company, where indicators of both segments were used for situation analysis.

The financial model included the following crucial components:

• Basic assumptions required for the preparation of the financial statements include:

  • Vineyard cultivation and equipment costs
  • Raw material purchase price
  • Wine material costs
  • Selling price for the produced final goods and etc.

• Income statement
• Cash-flow statement
• Balance sheet
• Various financial data and ratios such as IRR, NPV, ROA and ROE

In addition to the financial model, PMCG also provided the company with important information about the industry to safeguard the process of development, including:

• The history and traditions of wine production in Georgia
• Georgian wine market analysis
• The trends on international markets
• Description of the major wine producing processes