Spirits in Georgia

PRE-COVID-19 PERFORMANCE

High excise tax on vodka continues to restrain growth in 2019

Thanks to economic growth and a stabilising currency, especially in urban areas, consumer expenditure on alcoholic drinks, including spirits witnessed growth in total volume terms in 2019. Nevertheless, total volume sales of spirits are still yet to return to levels seen prior to the introduction of the new alcohol taxation process in 2015.

Boom in tourism leads to growing range of brands and products

Georgia experienced strong growth in inbound tourism over the review period with this continuing in 2019. The country’s established popularity as a destination for tourists from former Soviet states, and increasingly from other European countries and Asia Pacific, continued to have a positive impact on the development of many fmcg categories, including spirits.

Competition intensifies within vodka in 2019 with Samgori vodka exiting the market

Nemiroff UVK remained the overall leader in spirits in total volume terms in 2019, thanks to the leading position of its Nemiroff brand in vodka, which is the dominant category of spirits in Georgia. Aside from its affordable price and long-standing brand presence, wide distribution plays a key role in the success of the brand, which is available even in more remote and rural areas of Georgia.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of spirits are expected to fall by 26% in 2020 in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within spirits

Many products and brands within spirits are imported to Georgia and therefore not only have sales suffered from a drop in demand but there have also been supply issues, with importers seeing reduced opportunities to bring products into the country. Furthermore, local producers have seen their production capacity drop due to the lockdown, while micro-distilleries have been forced to close.

Recovery and opportunities

Georgia’s foodservice industry saw strong development over the review period in large part thanks to the rapid rise in tourism, with many restaurants being heavily reliant on tourists for business. As such, the future performance of spirits through the on-trade will be heavily reliant on a rapid return to normality.

Files are delivered directly into your account within a few minutes of purchase.