Georgia: 2005 beer production reached 50.864 million litres

Statistics provide that Georgia’s 2005 beer production reached 50.864 million litres, which is GEL43.910 million in money expression (about US$24 million), a jump of 10.102 million litres year-on year. In 2004, the reported beer production level was 40.762 million litres (GEL34.838 million). The Georgian annual average beer production increase is 15%, The Union of Russian Brewers reported May 31.

There were 15 breweries in 2005 in Georgia releasing 32 brands.

The volume of imported beer has fallowed the same increasing trend. According to 2004 figures, Georgian beer importers have brought into their country 3.361 million litres of beer (US$2.250 million). In the 2005, imports of beer reached 9.257 million litres for an amount of US$5.257 million. During the first three mounts of 2006, Georgia imported 1.084 million litres of beer (US$590,000).

Presently more than 80% of the beer domestic market is being controlled by local beer producers. Imported beer satisfies 15% of Georgian beer-drinkers’ tastes. It is important to note that last year imported beer’s share of Georgian market totaled more than 9%, while in 2004 it was near 5%.

Ukraine and Russia are the leading suppliers of Georgian imported beer. The country of Ararat imported 4.703 million litres of beer from Ukraine in 2005 for an amount of US$2.180 million, which is near 50% of the total volume of imported beer. For the first 3 months of 2006, the volume of Ukrainian imported beer has reached 445,000 litres (US$180,000).

Russia exported 3.023 million litres of beer in Georgia in 2005 (US$1.834 million) and 395,000 litres (US$223,000) in the first 3 months of 2006. Russia lead beer exports to Georgia in 2004. Georgia imported 3.361 million litres ob beer in 2004 from which 2.151 million litres were from Russia.

Imported beer volume growth is basically caused by the emergence of the new Tax Code of Georgia, providing a more preferential taxation treatment for beer importers. Besides, the Georgian businessmen declare, that volumes of import of beer can increase again after the Parliament of Georgia will accept the new Customs Code. According to the law project which has been accepted by the Parliament in the first reading, the customs tax for imported beer will decrease from 12 % down to 5 %. We shall note that in 2005 beer imports were processed by 30 companies but now they have almost doubled.

Georgian beer exports are to increase as well, statistics claim. In 2004, Georgia exported 94,000 litres of beer (US$114,000). In 2005, the volume of exported beer reached 197,000 litres (US$210,000). During the first 3 months of 2006 Georgia shipped for exports 66,300 litres of beer (US$70,000).

There are nearly 30 companies which actually are dealing with exporting Georgian beer to 18 countries. The most part of beer is exported to its neighbor, Armenia. 132,000 litres of beer (US$148,000) in 2005 and 66,000 litres of beer (US$69,000) during the first three months of 2006 were progressively shipped to Armenia.

“Kazbeghi” is presently the largest exporter of Georgian beer. The company ships out annually 7-8% of the entire volume of Georgian exported beer.

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