Savoury Snacks in Georgia

PROSPECTS

Potato chips benefit from advertising and promotional support

Potato chips remains the category leader, with very strong awareness and a high level of popularity of products in the category. Although potato chips is much more developed compared with other products such as pretzels and popcorn, expansion continues thanks to strong advertising and the use of attractive price promotions, such as offers in bundles with beer or other snacks.

Development of modern grocery retailers boosts niche product areas

While potato chips are benefiting strongly from widening distribution via modern grocery retailers, many niche products are also benefiting from the expansion of supermarkets and hypermarkets across the country. Many consumers are notably gaining easier access to products such as packaged pretzels and popcorn, with this encouraging trial purchases and boosting awareness.

Health issues not a strong factor and salty snacks remain popular

The potato chips category is dominated by imports, and price competition in the category is something with which local producers are unable to compete. Importers manage to keep their prices low thanks to devalued currencies in countries such as Ukraine and Russia.

COMPETITIVE LANDSCAPE

PepsiCo benefits from financial strength and well-known brands

PepsiCo Inc gained further share in Georgia in 2019, and is expected to increase its presence further in coming years. The plans to widen production in Ukraine are expected to also benefit the company’s sales in Georgia.

Generics may grow sales but much will depend on modern grocery retailers’ strategies

Generic unbranded products saw a decrease in share in 2019, and this is expected to be continue over the forecast period. Competition from Lay’s and Pringles is intensifying, with these products seeing strong advertising support, with this preventing generics from achieving greater sales.

Low entry barriers encourage fragmentation but leaders unlikely to be seriously challenged

Snacks see strong competition, and there are many minor importers. Furthermore, the technology of preparing products such as bread chips is quite basic and simple, so there are minimal barriers to entry.

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