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Kula: Zedazeni Juices May Reduce Sandora Sales in Georgia

The juice companies operating on the Georgian market assess beer company Zedazeni’s entry into the natural juice market. General Director of Kula doesn’t consider Cezar Chocheli’s company as a rival and says that all depends on the company’s activities.

As for the juice market expansion, he notes, that the more local products there are, the better. Vano Goglidze evaluates  the results of the recent studies, according to which, the Ukrainian juices Sandora lead in sales. He believes that the appearance of the new company on the market could change the picture. Sandora has been operating on the market for a long time and has its customer base in Georgia. At some stage, the new company may change the research results, and even replace it.

Beer and lemonade manufacturer Zedazeni is starting production of natural juices. At the initial stage, the investment will amount to 7.5 million euro. CBW was told that Zedazeni will release natural juices in tetra pak or cardboard packaging, which will make their product prices relatively accessible.

Local companies occupy only 15-17% on the Georgian market of natural juices. According to a survey conducted by Gamma Research, in the past two years the Ukrainian company Sandora accounts for 50% of sales in this market. The three leaders also include the Russian company Fruktoviy Sad (10%) and the Georgian Campa (10%).

The study says that juices produced by several dozen foreign companies are sold on the Georgian market, and consumers prefer imports to local products. The study was conducted in 2012-2014 and found that the market is stable and does not virtually change, and grows  mainly at the expense of importers. The juice market is divided into the following segments: juice, nectar, fruit-drink and juice-containing drinks. A major share of sales, 84-85 %, falls on nectars, 13-14% – on natural juices,  the rest of the products make an average of 1%.

In 2014, the average price of 1 liter of juice  was 3.35 GEL, 1 liter of nectar – 3.10 GEL. According to their tastes, the users prefer (40%) mixed fruit, followed by oranges and cherries (12% -12%), peaches (10%), apples (6%), other types – 20%.