The Georgian Competition and Consumer Agency (GCCA) has approved two concentrations in the FMCG and beverage production market. In one case, "Daily" Ltd is purchasing 100% of the shares of "Retail Investment" Ltd. In the second case, "Daily" Ltd is acquiring all shares of the "Georgian Beer Company".
For the concentration involving “Daily” and "Retail Investment", the GCCA's analysis revealed that, in 2023, there were approximately 12,000 companies engaged in retail FMCG activities across the country. The total market size reached 11,983,346 million GEL. Before this acquisition, the largest market participant held a share of no more than 13%.
The current market concentration index (HHI) stands at 461, which will increase to 581 following the implementation of the concentration. According to the agency's assessment, the market is considered low-concentrated, and the change in the concentration index as a result of this acquisition is not significant.
In the case of "Daily" Ltd and JSC "Georgian Beer Company" (Zedazeni), the parties involved operate at the production, wholesale distribution, and retail levels. Consequently, the agency assessed the concentration across all three sectors.
Focusing on the beer and non-alcoholic beverages market and based on the segmentation of JSC "Georgian Beer Company"'s products, and according to the Agency's collected data, it was found that in 2023, there were 215 companies operating in the non-alcoholic beverage sector, with a total market volume of 464,757,669 liters. The market concentration index (HHI) for this sector is 2,590. The agency concluded that this market is highly concentrated, although the index is only slightly above the threshold for a moderately concentrated market, and this state is not primarily a result of the activities of JSC "Georgian Beer Company."
In the beer market, there were 75 companies operating in the same year, with a total market volume of 90,532,597 liters. The market concentration index (HHI) was 1888, indicating a moderately concentrated market. For the distribution services market in 2023, the total volume reached 6,264,342,157 GEL, with a market concentration index (HHI) of 518.02, which signifies a low-concentration market.
Based on the market analysis conducted by the Agency, and considering the structure of the evaluated markets and the market shares of the parties involved in the concentration, it has been determined that the planned concentrations will not significantly impact the competitive environment.
For information: In 2024, the GCCA verified 47,644 concentrations. During the reporting period 11 concentrations were approved. At present, the compatibility of 3 concentrations with the competitive environment is being evaluated, and administrative proceedings have begun regarding 6 concentrations.
