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Nikoloz Khundzakishvili

Beer Industry Grows by 2-3% in Georgia

In 2017 the beer industry grew by about 2-3%, Nikoloz Khundzakishvili, director of Natakhtari corporate affairs, told BM.GE. The sector’s growth would be 5-6% without changes in beer excise tax structure.

“Changes in excise tax structure raised prices on a part of products, while another part cheapened. Strong beers with 3% ratio in our portfolio rose in value, while light beers with 20% ratio cheapened. 5-degree beers with 77% ratio in our portfolio maintain the same prices. As a result, averaged weighed excise tax has slightly declined. In Natakhtari this amount made up 500 000 GEL and this sum was reinvested in the company development”, Nikoloz Khundzakishvili, director of Natakhtari corporate affairs told BM.GE.

“Low-degree beer with 4-4.7% alcoholic content cheapened, while high-degree, that is 8% beer rose to 96 Tetri from 60 Tetri. However, the ratio of strong beer is very small in our portfolio and therefore, increased prices has not affected this segment much, because this is an expensive segment and its consumers have accepted the new reality.

As a result of changes in the excise tax structure, we have received a very good tendency and the so-called low-alcohol beer segment has been developed by 10-15% and its ratio in the whole sector constituted 20%. This is a very good trend. Consumers have also accepted this segment and this factor enables us to continue working in this direction”, Nikoloz Khundzakishvili said.