Juice in Georgia

PROSPECTS

Local manufacturing supports price stability during currency fluctuations

As the review period showed, many fast moving consumer goods categories were affected by the devaluation of the Georgian lari against the US dollar and the euro. However, juice in Georgia was outstanding in terms of its unit price stability.

Per capita consumption has further growth potential

With total average annual per capita juice consumption of five litres, Georgia is in very last position in an Eastern European perspective, whilst the average figure for the entire region is 17 litres. The high historic volume CAGR and the performance in 2018 makes it highly likely that juice in Georgia will see further significant growth, and the potential of the currently underdeveloped category will be exploited further.

Unit prices are set to fall as the competition increases

The competition between local manufacturers and importers remains strong, which is keeping unit prices more stable compared with other soft drinks categories in a situation where the local currency rate faces fluctuations and devaluation against the US dollar and the euro. Within the forecast period, the emerging nature of the category is expected to make the competition even stronger and attract new players, which will bring about a decrease in the average unit price of juice at constant 2018 prices.

COMPETITIVE LANDSCAPE

Local production sees growth in 2018

It is not too hard for local producers to maintain their strong positions in juice. Relatively low costs for manufacturing compared with importers allows them to maintain higher mark-ups.

A game-changer appears in juice

In 2017, an important player in carbonates entered juice. Local manufacturer Kartuli Ludis Ko launched juices under the brand Chero.

Sandora maintains its lead

Sandora, a subsidiary of PepsiCo Inc, led juice in off-trade value terms in 2018, with its Sandora brand. This brand is one of the best-known amongst Georgian consumers, and benefits from very strong distribution.

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