Business
Posted: 1 month ago

9 Mta Plans to Move Production to Georgia and Expand Its Exports

"9 Mta" increased the price of beer by 15%. As the CEO of the company told "Business Partner", there are many reasons, including the depreciation of the lari and the rise in prices of raw materials.

"At the first stage, we tried our best not to change the prices in the direction of growth, but due to the significant rise in prices of raw materials, we could not help it. We had to adjust the prices by about 15%, ”said Irakli Tsintsadze.

"A large part of our sales came from the hospitality segment, but the structure has changed. Retail sales increased while HoReCa decreased in the sector. Against the backdrop of pandemic restrictions, our sales in the HoReCa sector have fallen by more than 80% over a period of time. Before the pandemic, we had an annual growth rate of 60%. It is noteworthy that we are a manufacturer of "Kraft Beer", we are entering a relatively high price segment and, consequently, the pandemic has affected us more than the companies producing industrial beer. The reduced activity in the HoReCa sector has dealt us a bigger blow than in the case of industrial beer, ”said Irakli Tsintsadze.

As for the company's investment plans. The pandemic, as in the case of other sectors, has changed the plans of the beer industry to some extent, but "9 Mta" plans to fully expand production in Georgia in the near future, as well as to develop export markets.

"It is difficult for business when you can't go according to a pre-planned plan. We have plans to move production in Georgia, our beer also has export potential. We are working on these areas, talking to investors and I think we will start implementing it from next year, "- said Irakli Tsintsadze.