Russia Beyond the Headlines 12 March 2013
The Russian winemaker is looking for an investor to help it develop new sales channels and increase output. However, the company is not selling a controlling share, which is why Russian investors have been hard to find. Experts say such high-quality Russian wines have good potential, but they may need state support as well.
The owners of Chateau Le Grand Vostok (CGV) — Russia’s leading premium winemaker — have put up to 49 percent of equity in its parent company, OAO Avrora, up for sale. The winery is planning to seek a prospective investor in London, in the hopes of raising $6.5 million for the expansion of production and sales.
Elena Denisova, chairman of the board of directors at Chateau Le Grand Vostok, said that insufficient working capital was preventing the company from achieving its full potential. “We are doing this not because we are in any kind of financial trouble or poverty,” said Denisova. “As far as we are concerned, Chateau Le Grand Vostok has considerable upside potential: our brand awareness is way ahead of our company’s product availability in retail channels.
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Russian winemaker Chateau Le Grand seeks Western investor
