Spirits in Georgia

PROSPECTS

Vodka expected to lose ground to other spirits categories over the forecast period

Vodka continued to dominate white spirits in Georgia in 2017, and remained by far the largest spirits category overall in total volume sales terms. Vodka has long been popular among local consumers, partly because it is perceived as a relatively cheap drink, and such products are widely available across the country.

High price elasticity remains a major threat to development of spirits

Excise taxes were increased in various spirits categories in Georgia in 2016. In vodka, excise tax rose from GEL6 to GEL10 per litre, while that in the more dynamic whiskies category rose from GEL10 to GEL15.

Outlook remains bright for whiskies and chacha

Whiskies was the most dynamic of the main spirits categories in terms of total volume sales growth during the review period. While this was partly due to its ongoing emergence from a relatively low base, the category also benefited from growing interest among young adults who could afford more expensive types of spirits.

COMPETITIVE LANDSCAPE

Nemiroff leads spirits in 2017

Nemiroff was the overall leader in spirits in total volume sales terms in 2017 thanks to the leading position of its eponymous brand in vodka, the single largest category. Aside from its affordable price, wide distribution plays a key role in the success of this brand, which is available even in more remote and rural areas of Georgia.

Competition in vodka remains intense

While Nemiroff remained the top brand in vodka in 2017, it continued to face stiff competition from other popular brands in the category. These included Parliament from Parliament Group UK OOO and Zelenaya Marka from Russkiy Alkohol ZAO, both of which are owned by Russian Standard Corp at the global level.

Biggest local spirits producer loses ground

Gomi Spirit & Vodka Factory, the biggest local producer in spirits, saw its total volume sales share in the category decline substantially in 2016 and 2017. The company is focused on the economy segment in vodka, which was hit hard by an excise tax increase in 2016.

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