A traditional beer festival organized by Natakhtari company will not be held in the capital and regions this year. The reason, as the company explains, is an increase in the excise tax on beer resulting in sales decline.
“We have several times urged the government to revise its decision to increase the excise tax, but there was no response. The beer market has declined, the official data confirms this. In March-April, sales of the local beer producers reduced by 45% that has a negative impact on the companies’ activities and the beer industry, in general. This figure is quite undesirable. For this reason, we were forced to suspend beer festivals. Natakhtari Beer Festival was the first Georgian analogue of the beer festivals held in various countries of Europe and America. We hope that next year the situation will change for the better and we will not be forced to abandon the idea of carrying traditional festivals,”- Nikoloz Khundzakishvili, Corporate Affairs Director at Natakhtari, states.
Beer companies believe that the introduction of the regulations in such a growing and thriving sector like the beer industry where 97 percent of the market is occupied by local business, will have a negative impact on other sectors both in the short and long-term run.
Therefore, companies once again ask the government, the Parliament and the Ministry of Finance to start talks with representatives of the industry regarding the abolition of the regulation and development of mechanisms for the beer market. Soft drinks manufacturers also demand a meeting with the Prime Minister due to the introduction of mandatory labeling for non-alcoholic products.