The Georgian Competition and Consumer Agency (GCCA) has approved a concentration in the baby food supply sector as compatible with the competitive environment. The transaction concerns the acquisition of a 70% shareholding in LLC “Fine Tree International” by natural person Giorgi Tvaladze.
Having regard to the nature of the undertakings’ activities and their respective product range, the Agency’s market assessment focused on the following relevant product markets:
1) infant formula (breast milk substitutes) for children aged 0-12 months;
2) follow-on milk for children aged 1-3 years;
3) milk-based and non-milk-based cereals;
4) ready-made baby food products, including purées, yoghurts and puddings.
Based on information obtained from market participants, the Agency established that in 2025, at the level of imports of baby food products: 1. The infant formula market (0-12 months) amounted to GEL 40 669 793, with a Herfindahl-Hirschman Index (HHI) of 1383.45; 2. The follow-on milk market (1-3 years) amounted to GEL 17 794 895, with an HHI of 1893.41; 3. The cereals market amounted to GEL 13 847 298, with an HHI of 1985.65; 4. The ready-made baby food market (purées, yoghurts, puddings, etc.) amounted to GEL 13 551 166, with an HHI of 1702.8. Each of the relevant markets was characterised by the presence of 11 active undertakings.
In addition, the Agency assessed the markets in which entities affiliated with the acquirer, natural person Giorgi Tvaladze, operate. In particular, the relevant markets were defined as follows: For LLC “BD Plus”- the market for household chemicals, hygiene and personal care products; For LLC “BD Holding”-the market for consultancy services.
The Agency concluded that the relevant markets for the supply of baby food products are moderately concentrated, while the market shares of the parties to the concentration remain limited. Furthermore, the markets for household chemicals, hygiene and personal care products, as well as consultancy services, were found to be low in concentration, with insignificant market shares held by LLC “BD Plus” and LLC “BD Holding”.
In accordance with Georgian legislation, concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined.
In 2026, the GCCA approved a total of six concentrations.
