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Illicit sales of fine cut tobacco continued to limit growth of legal products in 2018. Although retail volume sales recorded steady growth over the review period, it is likely that this could have been significantly higher without the high levels of sales of illicit product.
Flavoured and filter cigarillos are popular in Georgia, and smokers are usually loyal to these products in their own right, with few consumers switching from cigarettes to cigarillos. Aficionados of cigarillos, although relatively small in number, are willing to pay for standard price products, with price fighter versions having virtually no presence in the country, and this situation is unlikely to change over the forecast period as the limited size of the opportunity discourages manufacturers from any significant investments in the category.
Tobacco specialists have traditionally been the main distribution channel for cigars and cigarillos, and the channel’s share again increased in 2018 as more such outlets opened across the country. Kiosks are also beginning to offer cigars and cigarillos as the strong growth of these products offers an opportunity for increased profit for these retailers.
Although tobacco specialists continued to dominate sales of smoking tobacco and even increased its share in 2018, the presence of illicit fine cut tobacco continued to increase in outdoor markets, where it is sold loose and at considerably lower prices than legitimate brands. This makes it difficult for companies to invest in the category and build brand loyalty.
Due to the strong presence of illicit fine cut tobacco in Georgia, brand loyalty is extremely elastic in the country, with many brands coming and going from the category over the years. Players are reluctant to invest in the point-of-sale marketing required to build a loyal customer base, as the majority of consumers are highly price sensitive and will often choose illicit versions rather than brands.
The Backwoods and Jewels brands in cigarillos were discontinued in 2018 due to low sales, with other brands gaining share as a result, in particular Candlelight by Johann Wilhelm Von Eicken. These are small, flavoured cigarillos using fresh tobacco and are manufactured in Germany.
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Discover the latest market trends and uncover sources of future market growth for the Cigars, Cigarillos and Smoking Tobacco industry in Georgia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Cigars, Cigarillos and Smoking Tobacco industry in Georgia, our research will save you time and money while empowering you to make informed, profitable decisions.
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.