Igor Ilievski, CEO of Tikveš Winery for PROFIT magazine.

Mr. Ilievski, where were you born, where did you grow up and receive your education?

I was born in Skopje, where I grew up and went from elementary school, to the secondary school of economics, and finally to the Faculty of Economics at the “Ss. Cyril and Methodius” University, where I graduated from the Financial Management program. During my professional development I also acquired an MBA at the University of Sheffield.

How did your career develop before you became the CEO of Tikveš?

After graduating, at the end of 1998, I replied to an ad for a trainee-manager position published by Pivara Skopje AD (JV of Heineken and Coca-Cola Hellenic companies in FYROM). After an extensive testing and selection process, I was lucky enough to become a part of the Pivara Skopje team and that ad was the first and only ad I have ever replied for.

I spent 10 years at Pivara Skopje, starting as a sales analyst and a financial analyst, then using the opportunity to transfer into the marketing sector where I, having advanced through the hierarchy in the previous four years, performed the duties of Marketing Manager. In 2009, after going through a special education system within the Heineken and the Coca-Cola Hellenic companies and completing all internal procedures, I kept advancing and continued my career within the Coca-Cola Hellenic system, where I stayed until the end of 2011 as the Sales Manager for Montenegro, that is, the Executive Manager of Coca-Cola Hellenic Crna Gora d.o.o. At the end of 2011, I accepted an invitation from the owner of Tikveš, and therefore accepted a great challenge to perform the duties as the CEO of Tikveš Winery.

This year the Winery is marking 130 years of its existence. In what way will Tikveš celebrate this great anniversary?

We want to use the anniversary to further express our gratitude to all those responsible for our success so far and emphasize how much we appreciate the cooperation with all of our consumers, partners, cooperators, distributors, employees, and suppliers.

Of course, the anniversary is an opportunity to contribute to the community as well, which a socially-responsible company such as Tikveš is continuously doing, and an opportunity to prepare special consumer promotions, events for the admirers of our wines, and the general public as well, but also to continue elevating the wine culture by organizing sommelier academies. In this way, anyone who is interested, that is the general public, can celebrate this important anniversary with us throughout the entire year.

Each year, Tikveš wines receive significant awards at competitions held throughout the world. What is the nature of these awards and how important are they to the company?

Each year we win around 50 awards and recognitions at all the important competitions worldwide. These are great recognitions coming from the world’s best critics, that is wine tasters. According to the number and significance of the awards at these prestigious wine competitions, we take the leading position in the region each year.

What is especially important to us are the scores awarded to our wines by one of the most important wine critics today, Robert Parker, and his Wine Advocate magazine, which makes Tikveš the only winery in the region to receive more than 90 points for 12 wines from its portfolio, which is a remarkable confirmation of Tikveš’s credibility as a company. The “Bela Voda” harvest of 2012 stands out with 95 points. High scores were also given to the “Barovo” red wine from the harvests of 2011 and 2012 with 93 points, the “Barovo” white wine from the harvests of 2012 and 2013 with 89 points each, as well as the “Bela Voda” white wine from the harvest of 2012 with 90 points, and 92 points from the harvest of 2013. What is impressive is that the “Bela Voda” red wine from 2010 received 94 points, and kept, that is, improved its scores for the following two harvests, meaning that it received 94 points for the harvest of 2011 and 95 points for the harvest of 2012. The importance of Robert Parker’s scores for Tikveš is threefold.

Firstly, they confirm our strategy of quality over quantity. Secondly, Parker’s scores are the best recommendation for consumers on the USA market, as he has the most influence, but this effect is also reflected on the European market, and in China as well. And thirdly, the awards confirm that the region has the potential to create wines equal to the world’s most elite wines coming from France, Spain, and Italy.

Where do you export your wines to and which markets are the most important to you?

One of the key factors, and perhaps the most important one, for conquering new markets is the advancement of the product’s quality. That is why Tikveš’s strategy is based on the production of high-quality wine which will be recognizable on foreign markets.

Tikveš Winery distributes half of its production to foreign markets in over 25 countries. The natural and historical connection between ex-Yugoslav republics entails that we are traditionally present on all the markets in the region, and in the last few years we have opened a new chapter by breaking through to the USA market by cooperating with a company which deals exclusively with importing premium wines from France, Italy, and Spain, and our wines are the first ones being imported from outside these well-known regions. We are also present on the selective Great Britain market and in several EU countries and in Scandinavia. We are already present in China, where lately we have been intensively working on a business model which will provide us with sustainable development.

The Domaine Lepovo boutique winery has recently become a part of the Tikveš system. What results were achieved from the purchase up until now and what are the plans for the further development of this winery?

The Domaine Lepovo winery is a part of Tikveš’ strategy for the diversification of its portfolio and focusing on developing wines in the premium segment, which includes discovering, using the potential, and the promotion of the best terroirs across the region – not limiting Tikveš only to FYROM.

This is a small capacity winery, the first in this region which looks up to the French boutique wineries focused on producing a limited quantity of the highest-quality wine made exclusively from its own vineyards.

With the new Domaine Lepovo winery, we are introducing an important change to the approach of producing limited quantities of high-quality wines in small, so-called boutique wineries. Our goal is to acquire the ideal maturity by using a special approach to growing grapes, and to immediately, at that very location, turn those grapes into the best, and most unique wine.

Domaine Lepovo got its name from the beautiful location of Lepovo, which provides ideal conditions for growing grapes and producing exquisite wines of remarkable quality under the leadership of our friend and associate, world renown expert, Philippe Cambie.

We have planned this new chapter in the development of our winery carefully, and for a long time, with the aim of creating wines which will take their place amongst the world’s elite wines.

According to some analyses, Serbian consumers are great admirers of Tikveš wines. Are you happy with the results achieved in Serbia so far?

We are an established regional winery on its way to becoming a world-known wine brand. That is why our business approach entails maximum dedication to each market where Tikveš wines are consumed.

We have been present on the Serbian market for decades, and Tikveš wines are well-known there, and most importantly – Serbian consumers recognize the quality and uniqueness of our wines.

According to sales figures, we are always among the top 5 wineries on the Serbian market where there are no distinguishable wine leaders, and these 5 wineries take up about 75% of the market.

What is very important to us is that Tikveš has been recording growth each year by offering an excellent quality and broad product portfolio, which can meet the needs of different consumer groups. Since the satisfaction of consumers in Serbia is important to us, we are clearly focused on improving that satisfaction by elevating the general wine culture and fulfilling the consumers’ needs and tastes.

What is the amount of investments in the promotion and positioning of your wines on the Serbian market during the past years? What are the plans for the development of your brands in the following years in Serbia?

We have been continuously investing in the development of the Serbian market, distribution, marketing, social responsibility, and consumer education in the amount of over EUR 3 million during previous years which shows our determination for a long-term dedication to the market in Serbia, and for creating a foundation for further development through a business model which includes local acquisitions.

Our plans for development on the Serbian market predict the continuity of investment in all business areas. Of course, we can always do better, and that is why we are not completely satisfied and we have to continue to work on changing the consumers’ perception through education and direct contact, thereby explaining the advantages of consuming authentic high-quality wine backed by the Tikveš quality guarantee.

In your opinion, what is the nature of the competition in the region’s wine market, and how do you manage to deal with the competition?

Tikveš is the most serious winemaker in the region – a large winery which has a wide portfolio of products, starting from a quality liter wine to special terroir wines like “Bela Voda” and “Barovo”, that is, wines that can meet the various needs of gourmands from moderate everyday consummation with food to the enjoyment of top-quality wine at special moments.

Competition cannot be avoided, and to distinguish oneself from competitors in business means to be different.

Our products are not within the economic segment (below RSD 200) because we always use the best quality grapes and we always offer the best value for money.

It is true that competition is tough in particular segments, however, Tikveš successfully overcomes it with quality and amounts produced during the year.

Wine quality always comes first. What is crucial in production for obtaining a quality wine?

There is no doubt that a quality management system is complex, but the base is rather simple: each activity in our winery has to imply high quality.

We guarantee quality in all parts of our wide palette.

A quality certificate, which is assessed by wine critics, comes from an independent side, and the awards are from reputable wine competitions. The key for the certain quality of our wines, along with the up-to-date production technology we use, is the quality of the grapes.

Without quality grapes there is no high-quality wine because consumers are informed and they should never be underestimated. It is a great challenge for us to change the habits of winegrowers we cooperate with and to teach them to comply with the agrotechnical measures for grape production which will meet our quality criteria. Tikveš owns 1,000 ha of vineyards and controls the quality of grapes on them by itself, but we also cooperate with more than 2,000 winegrowers and constantly invest in their development in order to achieve the best parameters of grape quality.

How do you manage to maintain the quality? How do you control the quality?

Tikveš changed the wine production strategy in the company in 2004 by introducing a control system on several levels, starting from vineyards, through the production process, to the final product control, that is, in all production phases.

Each year, each season is different from the previous one and identical conditions will probably never be repeated. Continuous control is necessary in all phases, and on the basis of the continuous tracking of vineyards and grapes in the process of ripening, the appropriate processes in the vineyards are determined.

The available technology, equipment, and our team of top oenologists provide for continuous growth in all quality parameters.

How many employees does Tikveš Winery have at the moment? Do you educate the employees in your company and, if so, in what way?

The winery itself has 230 employees, and the overall Tikveš system includes 350 people in all the markets we operate in. What we set as a task is for all employees to be trained in the general knowledge of wine, sorts and characteristics of world regions, that is, they are educated to the level of a sommelier academy, while there are those who are at the first and the second level of management besides the standard education on management and they are currently educated at WSET (Wine and Spirits Education Trust). The diversity of professions requires the second phase of education for each area of business separately.

How much do you invest into the modernization of the production facilities?

The key turning point in the development of Tikveš Winery occurred in 2003 with entry of the M6 investment group. This is how the investment cycle was started, which involved the complete transformation of the Tikveš business philosophy, including the production capacities.

In the last decade, nearly EUR 30 million has been invested into winery modernization, and this helped Tikveš keep pace with the best known European winemakers. Investments into the production process are continuous so that we can maintain and improve the quality level in all production processes, which is a key prerequisite for maintaining our leading position.

Do you manage to keep pace with European and world winemakers?

Accolades by experts and, most importantly, acknowledgments and the satisfaction of consumers show that we are keeping pace with the world, that we are keeping track with world tendencies, and also, that we are setting the directions for development in the region.

It is a great honor when you are side by side with famous world-renowned producers and when, during the assessment, a Tikveš wine leaves the wine connoisseurs and world-known critics breathless. All the awards our wines continuously receive, the conquest of new markets in the world, and continuous growth of our business confirm this.

What makes Tikveš wines different from the competition?

Our grapes are grown in a favorable climate for the grapevine and has this uniqueness which is suitable for many sorts of grapes. The Tikveš climate as a region, has been known since the Roman Empire – when it was the main center for the wine trade. I have already said that the heart of our wines is the quality of grapes – which sunlit, grow on an extraordinary land.

The warm climate, a large number of sunny days during the year, as well as a lower level of precipitation in comparison with the North wine regions are a natural prerequisite for grape protection, which leads to organic grape and wine production, which we plan to certify in the following period. The recognizable Tikveš signature is a skillful combination of local and international grape sorts, with the purpose of creating a unique wine with a unique taste.

For 130 years, it is a unique merging of the old and new worlds, tradition and modernity, climate and people, but also cutting-edge equipment and global knowledge and experience. These are sufficient elements for distinctness.

Which brands from your winery are the most famous and the most sought after in the market? Can we expect a new product this year?

Brand recognition is one thing, and the sales results and consumers preferences are another thing regarding the context of an extremely difficult economic situation and consumer purchasing power. In different markets those are different brands.

For example, in the USA, we are famous for the terroir line, and these are the “Bela Voda” and the “Barovo”, as well as the “Vranec Special selection” – which are highly rated because of Parker’s assessment and the sales of those wines are the best in this market.

These wines are also famous in the region. However, the sales of the “Alexandria” with the “Alexandria Cuvée”, as well as the “Tga za jug” are the best here. We must not, of course, forget the wines which bear the names of the sorts, and which, somehow, “settled down” as our Tikveš wines – when we say “Kratošija” or “Smederevka”, we consider the Tikveš “Smederevka” or the Tikveš “Kratošija”.

It is our goal to bring closer to consumers our premium “Special Selection” lines and Terroir Wines “Barovo” and “Bela Voda”, which achieve excellent results in many competitions. Today, they can be found in Serbia in wine boutiques and in some restaurants, but not on the wine lists in the USA and Europe.

We are constantly working on creating new, unique wines, on finding new locations, sorts or combinations of sorts which could represent something different and special, and that is why consumers should always expect something new from Tikveš.

In what way do you, as a socially responsible company, raise the awareness of citizens to the responsible consumption of alcoholic beverages?

Our marketing, advertising, and business communication strategy is governed by ethical principles of responsible communication with consumers. We advocate moderate consumption and the responsible enjoyment of wine, and we send this message to consumers. We are intensively working on raising the wine culture, and this includes recommendations for the enjoyment of wine in combination with food, the proper way of serving wine, choosing quality wine, and enjoyment in quality.

In what way do you participate in environment protection and natural resources preservation? Do your partners participate in environment protection?

Environment protection has a high place on our priority list because we receive our main resource from nature.

All vineyards owned by Tikveš Winery and most of the vineyards of our cooperators have the Global GAP certificate of good agricultural practice and environment protection, especially having in mind the usage of ecological protective equipment in the treatment of vineyards and the protection of land, water, and the entire biosphere.

To what extent is your work stressful and in what way are you able to relieve stress?

The answer to the first part of this question is a bit contradictory. On one hand, we are discussing wine, the love and passion for wine, the enjoyment, pleasure, gastronomy, that is, ultimately hedonism, which this work involves, and the scientifically proven positive effects of moderate consumption of wine on human health, and on the other hand, there are all the typical challenges and stress of the managing position of the modern age as in any other business.

Regarding everyday operations, I spend a lot of time traveling and on the road, and the rest of the time I am in meetings in the office, regardless whether I am in Kavadarci, Skopje, or Belgrade.

The sweetest and the most challenging part is the personal presentation and tasting of our top-quality wines with friends, cooperators, business partners, existing and new connoisseurs, and this daily schedule is really pleasantly difficult and physically demanding.

Balance, condition and health must be maintained, and I, for the most part, although not enough, do that by mountaineering on Sunday mornings for a few hours (during the summer season by mountaineering every other day early in the morning for an hour), and when traveling I try to spend half an hour or an hour in the morning in the fitness center of the hotel, usually walking up the incline on a treadmill.

What do you do when you have free time? Do you have a hobby?

Free time is always reserved for my family. Regardless whether we stay at home, go for walks, or travel, I use every opportunity to spend quality time with my wife Brankica, son Andrej (6.5), and daughter Mihaela (4) , getting away from all touch screen devices the children love to use. I, of course, socialize with friends, who always have the opportunity to directly enter the wonderful world of top-quality wines I present personally.

If you could, what would you have changed in your career, up until now?

One well-known saying goes: “One never regrets what he has done, but what he didn’t do”, and I believe that I have taken all the offered chances in the given moments in the right way, that is, I am satisfied with my current career development and the development of my personality.