Soft Drinks in Georgia
Euromonitor International's Soft Drinks in Georgia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 26 | Publication date: Mar 2007
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Executive summary
Soft drinks develops positively over 2000-2005 despite difficult economic conditions
The deep economic crisis in the decade leading up to 2005, together with the country’s break away from Russia, took a toll on Georgia’s soft drinks market. Nonetheless, the market still showed a positive development over the review period, registering solid growth in volume and current value terms. Growth in off-trade volume sales was mainly driven by the strong performances of the carbonates, fruit/vegetable juice and bottled water sectors. Soft drinks was traditionally heavily dependent on imported products. However, during the review period local production steadily increased. This, together with new product developments, also boosted soft drinks volume sales. In addition, a number of soft drinks sectors showed increasing maturity during the review period, prompting manufacturers to reduce prices in some cases in order to maintain competitiveness and increase volume sales.
Development of carbonates is defined by the battle between PepsiCo and Coca-Cola
Events in carbonates in 2005 were largely defined by the competitive battle between global giants Coca-Cola and PepsiCo, which were present in Georgia via their respective subsidiaries Coca-Cola Bottlers Georgia Ltd and Iberia Refreshments JSC – PepsiCo. While Coca-Cola held a commanding lead over PepsiCo in terms of volume sales for most of the review period, this changed when the latter opened its own factory in Georgia in 2005. Competition in carbonates intensified considerably, and both companies held similar volume shares at the end of 2005. This ongoing battle influenced the pricing structure of carbonates during the review period.
Local manufacturers feature prominently in key soft drinks sectors
Local manufacturers held the leading positions in a number of soft drinks sectors in 2005. Most notably, GG & MW, manufacturer of the well-known Borjomi brand, dominated bottled water in terms of retail volume and current value sales. This demonstrated that aside from product quality, tradition and national loyalty also played an important role in influencing the purchasing decisions of consumers. Similarly, local player Kazbegi JSC dominated the RTD sector in 2005 thanks to the widespread popularity of its Kazbegi Ice Tea brand. Other prominent domestic soft drinks companies included Lagi Ltd (carbonates), Nikora Ltd (carbonates and functional drinks), Sante GMT Ltd and Relco Ltd (fruit/vegetable juice), and Lagidze Ltd (carbonates and liquid concentrates).
Independent food stores maintains its lead as supermarkets/hypermarkets makes strong gains
Significant changes were observed in soft drinks distribution during the review period. While independent food stores remained the leading channel in terms of total volume sales in 2005, supermarkets/hypermarkets made substantial gains to occupy the second leading position. Moreover, supermarkets/hypermarkets dominated total volume distribution in functional drinks, powder concentrates and RTD coffee at the end of 2005. Another notable development during the review period was the establishment of a network of retail outlets by local soft drinks manufacturer Nikora to improve the distribution of its products.
Table of contents
SOFT DRINKS IN GEORGIA : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. TOTAL SOFT DRINKS SALES
2.1 Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
3. OFF-TRADE SOFT DRINKS SALES
Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
3.2 Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
3.3 Leading Company Profile: Nikora Ltd
Summary 1 Nikora Ltd: Operational Indicators 2004
Summary 2 Nikora Ltd: Production Statistics 2004
3.4 New Product Launches
Summary 3 Major New Product Launches 2004-2005
3.5 Off-Trade Distribution
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
3.6 Retailer Activity and Private Label Trends
Forecast Market Performance
Table 20 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 21 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 22 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 23 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
4. DEFINITIONS