Tobacco in Georgia
Euromonitor International's Tobacco 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.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 82 | Publication date: Oct 2009
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- Get insight into trends in market performance
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Executive summary
Reduction of illicit trade volume
The illicit trade volume of cigarettes in Georgia was very high until 2006. However, in 2006 the government undertook decisive steps in term of customs control, blocking the channels of illegal production and distribution. The volume of illicit trade cigarettes fell massively in 2006 and continued to fall over the remainder of the review period. This benefited legal cigarette sales strongly in 2006, although retail volume sales dipped again in 2007 and 2008.
Focus on Global Flagship Brands
In 2008, sales were concentrated amongst the most widely recognised tobacco brands, especially in relation to cigarettes. Given the rigid advertising restrictions operating in Georgia, the promotion and advertising of new brands was made very difficult and expensive. Therefore companies focused on so-called “Global Flagship Brands”, launching updates of existing brands which are well-known to the consumer and can be successfully sold without heavy promotional or advertising activity. This trend concerned multinational but also domestic brands.
Strong competition between domestic and multinational manufacturers
In Georgia there is very strong competition between domestic and multinational manufacturers. Domestic manufacturers concentrate on economy brands such as Pirveli, Comet, Astra, Mtkvari and L&M (which the domestic company Omega Group Tobacco Ltd produces under licence). Given the low level of income of the general population, economy and standard products experience the highest demand. On the other hand, multinational manufacturers are offering higher-quality products at affordable prices. In particular, Japan Tobacco Inc successfully used this strategy for its Winston brand. In general, the competition between multinational and domestic players is strong with sales close to parity in retail volume terms.
Independent small grocers leads cigarette distribution
The main distribution formats for tobacco in Georgia are independent small grocers and tobacco specialists. Tobacco specialists leads in cigars and cigarillos and smoking tobacco while independent small grocers leads in cigarettes. At the beginning of the review period, independent small grocers accounted for more than one half of retail volume sales of cigarettes. However, tougher trade regulations resulted in tobacco specialists gaining shares from independent small grocers from 2005. Tobacco products are also widely available in supermarkets/hypermarkets and convenience stores and non-retail channels (bar-tobacconists and hotels/restaurants/bars).
Conflicting trends in cigarettes in Georgia
The tobacco industry in Georgia is experiencing conflicting trends, which are impacting retail volume and value sales. On the one hand, anti-smoking propaganda has helped to reduce the number of middle-aged-and-older cigarette smokers. However, the number of younger smokers, including teenagers, has increased. The crackdown on smuggling has boosted legal sales, while rather sparing tobacco tax policies have encouraged the development of local manufacturing. As the result, unit prices grew at much slower rates in 2007 and 2008. Over the forecast period, cigarette sales are expected to decline in retail volume terms, but increase in constant value terms.
Table of contents
TOBACCO IN GEORGIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Reduction of illicit trade volume
Focus on Global Flagship Brands
Strong competition between domestic and multinational manufacturers
Independent small grocers leads cigarette distribution
Conflicting trends in cigarettes in Georgia
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/FCTC ratification
The Law on Tobacco Control in Georgia
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising and Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Table 3 Taxation and Duty Levies: Cigarettes
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 2 Cigarettes - New Product Launches/Withdrawals 2008
Prospects
Sector Background
Summary 3 Cigarette Price Band Definitions
Sector Data
Table 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 4 Cigars - New Product Launches 2008
Prospects
Sector Data
Table 45 Sales of Cigars by Subsector: Volume 2003-2008
Table 46 Sales of Cigars by Subsector: Value 2003-2008
Table 47 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 48 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 49 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 50 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 51 Company Shares of Cigarillos 2004-2008
Table 52 Brand Shares of Cigarillos 2005-2008
Table 53 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 54 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 60 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 63 Company Shares of RYO Tobacco 2004-2008
Table 64 Brand Shares of RYO Tobacco 2005-2008
Table 65 Company Shares of Pipe Tobacco 2004-2008
Table 66 Brand Shares of Pipe Tobacco 2005-2008
Table 67 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO
Headlines
B&G LTD
Strategic Direction
Key Facts
Summary 5 B&G Ltd: Key Facts
Summary 6 B&G Ltd: Operational Indicators
Company Background
Production
Competitive Positioning
BRITISH AMERICAN TOBACCO GEORGIA LIMITED REPRESENTATION
Strategic Direction
Key Facts
Summary 7 British American Tobacco Georgia Limited Representation: Key Facts
Summary 8 British American Tobacco Georgia Limited Representation: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 9 British American Tobacco: Competitive Position 2008
DIAMOND AND G LTD
Strategic Direction
Key Facts
Summary 10 Diamond and G Ltd: Key Facts
Summary 11 Diamond and G Ltd: Operational Indicators
Company Background
Production
Competitive Positioning