The main negative impact on spirits in 2020 came from consumers’ lower disposable income levels due to the financial impacts of COVID-19. Chacha showed the least steep decline across all declining sub-categories, whilst cognac showed the steepest.
The closure of on-trade channels also created significant pressure on spirits in 2020, which is expected to follow through into 2021. In addition to the lockdowns and closures, which created significant periods of time without sales, the decline in tourism also had an additional negative impact on the category.
Nemiroff UVK maintained its lead in fragmented category of spirits in 2020, thanks to the success of its top namesake brand of vodka – which accounts for the largest share of spirits in Georgia. In addition to 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.
A relatively strong bounce back in spirits is expected in 2021, with longer-term recovery related to social and economic recovery following the event of the pandemic. A return to more sociable lifestyles, with the reopening of on-trade channels and restarting of events will help stimulate sales once again.
Another factor essential to the recovery of spirits in Georgia will be the return of the country’s tourism trade, which has become key to its economy. This applies to both on-trade and off-trade channels.
It is expected that e-commerce will start to play a more important role in 2021 and beyond, following the online shopping trends which have been accelerated by the event of COVID-19 in 2020. In addition to consumers being able to purchase alcohol with their regular grocery shopping, an increase in takeaway food and drink home-delivery services is also expected, with consumers being able to purchase their wine through online channels and apps.
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Understand the latest market trends and future growth opportunities for the Spirits industry in Georgia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Spirits research and analysis database.
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