Spirits in Georgia

PROSPECTS

Premiumisation is an emerging trend in spirits

With the developing economy and stabilising currency in Georgia, consumers’ disposable incomes are growing, especially in urban areas. Consumer expenditure on alcoholic drinks, including spirits, is growing, and this is expected to continue.

The on-trade and off-trade channels see similar sales

Spirits boasts of similarly strong performances and an equal presence in both the on-trade and off-trade channels. Although off-trade accounts for a marginally larger share of spirits consumption in Georgia, due to the high price difference, the on-trade channel is expected to develop at a more dynamic pace over the forecast period.

The growth of tourism

Georgia experienced steady growth in inbound tourism over the review period, and this trend is expected to persist over the forecast period. The country’s established popularity as a destination for tourists from former Soviet states, and increasingly from other European countries, should continue to have a positive impact on the development of many fmcg categories, including spirits.

COMPETITIVE LANDSCAPE

Domestic vs imported spirits

Spirits in Georgia is split between imported spirits, such as whiskies and vodka, and domestic spirits, such as chacha. Sales of chacha are increasing amidst growing availability in developing modern retail outlets, and this product type is posting a strong increase in share within spirits, driven by its local heritage and lower retail price, both off-trade and on-trade.

Nemiroff leads spirits in 2018

Nemiroff remained the overall leader in spirits in total volume terms in 2018, thanks to the leading position of its eponymous brand in vodka, which is the single largest category. Aside from its affordable price and long-standing brand presence, wide distribution plays a key role in the success of this brand, which is available even in more remote and rural areas of Georgia.

The competition in vodka is strong

Whilst Nemiroff remained the top brand in vodka in volume terms in 2018, it continued to face strong competition from other popular brands within the category, which occupy almost the same market space. These included Medoff from Eastern Beverage Company and Khortytsia by Global Spirits AMG-77 Holding Co.

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