Case study: Exporter capitalises on trade culture

It was a glass of Australian wine served during a visit to Warsaw that inspired Dorothy Podgorska to establish her wine export business, Westavino.

“It was basic, but still much better than the other wines served, and it was heavily overpriced,” Ms Podgorska told WA Business News.

“I started looking at what kind of wines were available in Poland from Australia, and realised there were few.”

Nine months later, Ms Podgorska was capitalising on the growing demand for high quality, yet affordable wines, in Poland. Westavino’s first consignment containing Evans & Tate wine was exported to Poland in 1999.

Since then, the company has exported more than 90 Australian wines, with about 30 wines currently in distribution on Polish and Russian markets.

Over the past two years, the company’s revenue has risen from $32,000 to $100,000, and opportunities for further growth are being explored in the Czech and Slovak Republics, and Hungary.

Run solely by Ms Podgorska, the business has occasional assistance from contractors for bookkeeping and invoice work, and employs a promotional and marketing consultant based in Poland, who doubles as the company’s lawyer.

One of the biggest obstacles in establishing the business was the task of building a profile with limited resources, while competing against bigger, international players.

Ms Podgorska says she recognised early on that face-to-face contact with her Polish distributors was an invaluable commodity in achieving this advantage.

She believes this has given Westavino an edge over larger competitors, and has helped the company build an excellent reputation in target markets.  

“I can’t compete in terms of quantity and volume,” Ms Podgorska said.

“However, when you go to certain distribution points, I have more wines on the shelf than they have, and my range of wines is bigger and the prices are better.”

She has achieved this ascendancy by being responsive to the different business culture in Poland.

“It is not very easy to do business the traditional Australian way there, with an organised trade fair to introduce clients,” Ms Podgorska said.

“The trade culture is direct contact. You have to take potential clients to a restaurant and talk about the wine industry and Australia and about their families”.

Through exploring personal contacts, beginning with her marketing consultant, Ms Podgorska has established a strong relationship with major distributor Bartex, which commands 9.3 per cent of the wine market in Poland.

Twice yearly visits to Poland are mandatory in order to refresh contacts and introduce new proposals, with Moscow included on the itinerary for the first time last year.

For each visit, Ms Podgorska assembles a promotional brochure with wine names and descriptions, usually promoting about ten wines, and ensures she only meets with directors or key decision-makers. 

She researches the importers and suppliers to ensure a best fit, takes samples with her and invites feedback.

On one occasion, a wine distributor with a specific interest in Western Australia approached Austrade to source a contact.

Austrade suggested Westavino, and Ms Podgordska made a point of visiting the director of the company personally.

She subsequently won the contract, and her visit convinced the company to engage with Westavino, having previously felt ambivalent after the Austrade meeting.

Personal contact has been the key to the company’s continued success, with Ms Podgorska currently negotiating a contract with one of the biggest wine suppliers to Polish restaurants, following a visit to Poland in September this year.

The supplier, who had previously dealt with a large international exporter, is looking to change suppliers, because they believe they receive an inferior product, and feel alienated by the lack of correspondence from the company.

In addition to regular visits, Ms Podgorska also sends a parcel of Australian wine products to her key importers each Christmas, and sends premium wines from her personal cellar to key contacts.