According to abstract from Wine in Georgia, "Bulk wine continued to dominate the wine sales in 2012 as a result of its relatively lower unit price while offering reasonable quality. The majority of bulk wines sold on the Georgian market are still white wines. When it comes to bottled wines, the sales are dominated by several large local manufacturers, such as Telavi Wine Cellar JSC, Tbilvino JSC and Telliani Valley Plc. The Georgian wine market is expected to continue developing at a fast pace over the forecast period, further fuelled by the growing tourism inflows in the country. The number of smaller chateaus and guesthouses, which produce wine for their foreign guests, is expected to also increase in future, at the expense of the larger wine producers which concentrate on the production of economy brands for local consumption. A good example of such a business model is Chateau Mukhrani, which is located near the capital of Georgia. At the same time, it can be expected that with the changes of generations, domestic wine making for home consumption will decrease, as younger Georgians are not keen on making their own produce, rather than buying re-bottled wines".
According to Spirits in Georgia, the major trend observed on the spirits market in Georgia in 2012 was the switch by consumers from domestically-produced to imported spirits. The Georgian population is gradually switching from traditional wine consumption to smaller quantities of stronger spirits, especially vodka. More often in recent years during the traditional supras, when people consume various Georgian dishes, drink wine and make different toasts, the toasts would be said over a shot of vodka or other spirits. Euromonitor International's Spirits in Georgia report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2008-2012), allowing to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they legislative, distribution or pricing issues. Forecasts to 2017 illustrate how the market is set to change.
The Alcoholic Drinks in Georgia includes data on wine, spirits, and beer. According to the abstract, "Georgian alcoholic drinks market enjoys healthy growth despite the crisis. During the review period, the alcoholic drinks market in Georgia was characterised by stable growth of sales in both current value and volume terms, only partially hampered by the economic crisis in 2009. During the past five years the disposable income of Georgians increased rapidly, which resulted in higher spending on alcoholic drinks among other things. Wine grew more slowly than other alcoholic drinks categories, as it is among the most traditional alcoholic drinks in Georgia and is quite mature. Sales of spirits and beer grew much faster, with beer witnessing its strongest growth in 25 years. Sales of spirits increased the most in 2012, reflecting the increase in demand for vodka in recent years.
Local companies are leading the sales of alcoholic drinks in Georgia. The country is traditionally strong in the production of wine and brandy and there are good conditions for cultivation of various grape varieties. Georgian production not only accounts for the major share of sales of beer and wine in Georgia, but a considerable amount is intended for wine export. However, towards the end of the review period, there was local demand for imported spirits, especially at the premium end of the market.
In 2012 there were no major changes in the distribution channels of alcoholic drinks. The leading channels were still independent small grocers, food/drink/tobacco specialists and supermarkets. In 2012, the share of independent small grocers and food/drink/tobacco specialists actually increased, while the share of supermarkets slightly declined, because of the increase in sales through convenience stores. Independent small grocers and food/drink/tobacco specialists are most convenient for consumers: The former with its close location, while the latter has a wide offer of products, and both offer affordable prices.
Beer and spirits have largest potential for growth over the forecast period. The outlook for the Georgian alcoholic drinks market is very positive, and sales are expected to grow fast over the forecast period. The main threat to stable growth of the market is a possible delay in the economic recovery in the country, but this is not very likely. The categories, which are expected to experience fastest growth until 2017 are beer and spirits. New product developments and increased advertising in the economy and standard segments are expected to stimulate greater competition. At the same time, an overall reduction in unit prices will help the official producers of alcoholic drinks to compete against illegally-produced alcoholic drinks.
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