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Georgian Beer Industry Suffering a Crisis

Georgian Beer Industry Suffering a Crisis

The new regulations have significantly reduced sales of beer, so much that breweries are forced to increase the prices for production and reduce staff.

The first problem came after Parliament banned the consumption of alcoholic beverages in public places, respectively, brewers require abolition of the regulation.
According to Levan Zautashvili, CEO of “Castel – Georgia”, he had a meeting with the Chairman of the Parliamentary Committee on Sector Economy, and received assurances that the issue would be considered. “We hope that the problem will be solved within a month, otherwise we will be forced to either reduce wages or cut staff. A hike in prices for beer is not ruled out, which will hit the sales, “- he says. He notes that the brewers also met with the Prime Minister and briefed him of the situation in the industry, and also received a promise from the head of the government to consider this problem. “Natakhtari” also talks about the reduction of sales; according to the company’s management, a ban on drinking beverages in public places played a major. “Natakhtari” does not specify a percent decline in consumption. “We always encourage our customers to take responsibility, but at the same time believe that government regulations are too stringent. In addition, we must remember that the brewing industry is one of the most active and developing sectors of the Georgian economy, and deserves greater support from the state, “- say in” Natakhtari “.

At the same time, the company “Kazbegi”, which is also bearing the losses, considers the introduction of regulations partially justified. According to the company’s CEO Gogi Topadze , to drink beer in the yards cannot be forbidden, but drinking beverages on the streets should be prevented. At the same time, he adds that the company’s sales fell by 20%. “Zedazeni” says that despite the company’s share in the beer market grew , the regulations have reduced demand for beer. “Beer is mainly drunk in the street with friends, rather than at the table. In Georgia, the beer is not a celebratory drink. When similar restrictions are introduced, it is natural that consumers are afraid to drink beer on the street, in the yard, etc., because the police can fine them, “- say in” Zedazeni. ” Drinking alcoholic beverages in public places is a violation of the law in the Administrative Code of Georgia. According to the Ministry of the Interior, under the public spaces are meant stadiums, parks, squares, public transport, bus stops, pedestrian crossings, bridges, tunnels and entrances, as well as the places where more than 2 people gather. At the same time, the law does not apply to cases where the drink is consumed in outdoor cafes and restaurants.