“NATAKHTARI BREWERY”

In 2005, as the result of attraction of unexampled investment from “TBC Bank” and “EBRD”,
was constructed and launched “NATAKHTARI BREWERI”, equipped with ultra-modern
technologies.

Several favorable factors: ecologically safe environment, proximity from the Capital and,
primarily, unique and rare qualities of Natakhtari water preconditioned construction of the
brewery there.

We can say without exaggeration, that “Natakhtari Brewery” is owing to innovative

technologies, modern forms and methods of management, it has no analogue in South
Caucasus.

Lab equipped by latest technological equipment ensures safeness of “NATAKHTARI”

production.

Pickings clean by means of ionized air and ultra-violet rays. Plastic bottles have a special
protective film that preconditions safeness of the production from dangerous admixtures and
guarantees prolonged shelf life.

Excellent raw materials and skillful operations of technical staff determine quality of
“NATAKHTARI” brewery.

“NATAKHTARI BREWERY” adheres to well known German canon of brewing: they brew
beer only from malt and water, without any chemical adding.
 BEER PREPARATION

Beer is prepared from the following: malt,hops,water and leaven.

We can divide its preparation on three parts:

1. In sequence of boiling of malt and adding hops,they receive molasses/syrup,which is

necessary for the brewing process.
2. Cooled molasses /syrup goes to boilig section where they add to it leaven. After
fermentation,beer proceeds to the ageing stage. During these processes,special
attention should be paid to temperature and pressure.
3. Then we receive tastful beer,which after filtration is ready for consumption.

Mode of entry & Expansion strategy

Export

The form of international business activity we chose is direct export because it is easier to
transport already done production, then for example build new factory in Kazakhstan for
producing beer there. Firstly, because it will take long time. Secondly, we are going to export
only “Tride” beer, one product of “Natakhtari Brewery” and not all kinds of beers that this
factory produces. “Tride” beers segment is youth, and we think that this product will be
attractive for Kazakhstanian young people.
 Market research and analysis

Capital Astana
Official language Kazakh (state)
Russian (official)
Government: Presidential Republic

Area: total: 2,724,900 sq km

1,052,085 sq km
water: (%)1.7
Ethnic groups 
67.4% Kazakh
25.9% Russian
3.7% Ukrainian
2.5% Uzbek
2.4% German
1.7% Tatar
6.4% others[1]

Currency Tenge (T) (KZT)

The Republic of Kazakhstan, is a large Eurasian country in Central Asia and Eastern Europe.
Ranked as the ninth largest country in the world as well as the world's largest landlocked
country, it has a territory of 2,727,300 km² (greater than Western Europe). It is bordered by
Russia, Kyrgyzstan, Turkmenistan, Uzbekistan and China. The country also borders on a
significant part of the Caspian Sea. With an area of 2.7 million square kilometers (1.05 million
sq. mi), Kazakhstan is the ninth-largest country in the world and the largest landlocked country
in the world. It is equivalent to the size of Western Europe. It shares borders of 6,846 kilometers
(4,254 mi) with Russia, 2,203 kilometers (1,369 mi) with Uzbekistan, 1,533 kilometers (953 mi)
with China, 1,051 kilometers (653 mi) with Kyrgyzstan, and 379 kilometers (235 mi) with
Turkmenistan. Major cities include Astana, Almaty, Karagandy, Shymkent, Atyrau and
Oskemen. While located primarily in Asia, a small portion of Kazakhstan is also located west of
the Urals in Eastern Europe.

The climate is continental, with warm summers and colder winters. Precipitation varies between
arid and semi-arid conditions.

Culture
Before the Russian colonization, the Kazakhs had a well-articulated culture based on their
nomadic pastoral economy. Although Islam was introduced to most of the Kazakhs in the
fifteenth century, the religion was not fully assimilated until much later. As a result, it coexisted
with earlier elements of Tengriism. Traditional Kazakh belief held that separate spirits inhabited
and animated the earth, sky, water and fire, as well as domestic animals. To this day, particularly
honored guests in rural settings are treated to a feast of freshly killed lamb. Such guests are
sometimes asked to bless the lamb and to ask its spirit for permission to partake of its flesh.
Besides lamb, many other traditional foods retain symbolic value in Kazakh culture.

Traditional moral values of Kazakhs are respect of the elders and hospitality to strangers.

In the national cuisine, livestock meat can be cooked in a variety of ways and is usually served
with a wide assortment of traditional bread products. Refreshments often include black tea and
traditional milk-derived drinks such as ayran, shubat and kymyz. A traditional Kazakh dinner
involves a multitude of appetisers on the table, followed by a soup and one or two main courses
such as pilaf and beshbarmak. They also drink their national beverage, which consists of
fermented mare's milk.

It is very suprising that there are no problems with alchohol in Kazakstan, despite it being half
muslim.

The Kazakh people are rich in traditions. From birth through old age and death, every step of
their lives has historically been marked with celebration. Even their funeral ceremonies have
their own special symbolism.
Unfortunately, many rich and interesting traditions and customs of the Kazakh people have been
forgotten throughout the past century. Real sovereignty is just now being reestablished in
Kazakhstan due to the process of democratization. These abandoned traditions are just now being
rediscovered by the Kazakh people. These traditions include being respectful to old people;
being patriotic to the motherland; being honest; and learning to love mankind.

Economy

Kazakhstan's economy grew by 8.5% in 2007. Gross domestic product (GDP) grew 10.7% in
2006, 9.7% in 2005, 9.6% in 2004, 9.2% in 2003, and 9.5% in 2002.

Kazakhstan's monetary policy has been largely well managed. However, in 2007, rapid increases
in global commodity prices helped push inflation rates as high as 18.8%. Prior to this, inflation
had remained relatively steady at 9.5%, up from 8.4% in 2006. Inflation from 2002-2004 was
6.6%, 6.8%, and 6.7%, respectively. Because of its strong macroeconomic performance and
financial health, Kazakhstan became the first former Soviet republic to repay all of its debt to the
International Monetary Fund (IMF) in 2000, 7 years ahead of schedule. In March 2002, the U.S.
Department of Commerce graduated Kazakhstan to market economy status under U.S. trade law.
The change in status recognized substantive market economy reforms in the areas of currency
convertibility, wage rate determination, openness to foreign investment, and government control
over the means of production and allocation of resources.
Legal System

The legal system of Kazakhstan owes its origin to the Continental (Roman-German) legal
family. The Constitution, respective normative legal acts, international treaties, as well as the
normative resolutions of the Constitutional Council, and Supreme Court of Kazakhstan constitute
the actual law in Kazakhstan. The international treaties ratified by Kazakhstan generally have
priority over its laws and, such treaties can either apply directly/automatically, or, after the
adoption of a law where the treaty itself provides that, for its application, a law must be adopted.
Each of the regulatory legal acts of a subordinated level must not contradict regulatory
legal acts of the higher levels. All regulatory legal acts shall have direct/automatic effect, unless
it is otherwise stipulated in the regulatory legal acts themselves, or in acts regulating their
entering into force.
The powers of the legislature are severely limited; most glaringly, they don't even have
the power to initiate legislation. The legal system is based on the civil law system. There is a
Supreme Court of forty-four members and a Constitutional Court of seven members. While
much of the control is centered in Astana with the president, legislature, and courts, there are
fourteen provinces or states, called oblasts in Russian, with governors and certain rights.

Marketing plan

Our product “Tride” beer will first appear in to small super markets and the

volume of supply will be 150 000 bottles and on the bottles there will be hang

small booklet in English and Kazakh and Russian languages with briefly

information about “Natakhrati Brewery” history and also about its unique way of

preparing.

List of our competitors looks like this: Prices in $

Brewers Union of Kazakhstan 0.34

Efes in Kazakhstan 0.34

BBH in Kazakhstan 0.4

Heineken in Kazakhstan 0.34

«Perviy Pivovareniy Zavod» JSC 0.4

«Schymkentpivo» JSC 0.34

«Rosa» JSC 0.23

«Vostok — beer» Ltd 1.3

«Atameken and Co» Ltd 1.77

«Araj» JSC 1.5

«Ust-Kamengorodsky brewery» JSC 1.55

«Arasan» Ltd 1.7

Our products price on the market will be around 0.30 $

Finance management

Transportation cost For 25000 Bottles (1600 boxes -0.5 litre)

Destination : Tbilisi - Almaty

Price Includes:

1. Terminal Fee in Georgia

2. Terminal Fee in Kazakhstan
3. BAF (Bunker Adjustment Factor)
4. CAF (Curerncy Adjustment Factor
5. Documentation Expenses
6. Freite

Bottles Litre Cost Transportat Selling Marg

 ion Costs
per unit Price in
$ $ $
Small 0.50 L 0.16 0.04 0.30 48%

Operations management

For the first time we are going to supply Kazakhstanian market with a batch of

150,000 liters of Tride beer.

According to the geographical locations of Georgia and Kazakhstan, foreseeing the

speed of delivery, the best way of transportation is to deliver “Tride” by trailer

trucks. The truck can transport 25 tons so 6 trucks will be needed. The cost of a

truck will be not more then 4000 US dollars including both rent and transportation

expenses.

We also need warehouse to keep our goods before supplying retailer stores. Rent

expense will be about 1200 US dollars, which is affordable and when increasing

the volume of business it will become cheaper raletively to volume.

Thank you for attention