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Nikoloz Khundzakishvili: Beer Market Shrank by 3% in 2018

In 2018 Georgia beer market declined by 3%, Nikoloz Khundzakishvili, director for Natakhtari corporate affairs told Business Morning program.

The market declined after the solvency of our citizens shrank and GEL exchange rate depreciated; Bad weather has also made a negative effect on sales, he said.

Both domestic and imported beer markets declined, Khundzakishvili added.

“We have optimistic forecasts for 2019. Interesting processes are underway in the global beer industry; the market sees an amalgamation of major companies and this factor also affects our market. These developments inspire us to make a focus on premium segments and growth in value component of products”, Khundzakishvili noted.
New taxation system calculates excise tax due to the alcohol content and it has essentially changed beer consumption culture and increased sales of the so-called light beer, he added.

Excise tax on 1% alcohol content is 12 Tetri. Our motivation is to pay less. Therefore, we started production of low-alcohol beer and our population and customers have positively accepted it, Consequently, the market of the so-called light beers rose to 20% from previous 5%”, Khundzakishvili noted and added that Natakhtari company will introduce several new beer products in 2019 as licensed franchises of the well-known brands.