18.Aug .2022 12:00

Grado Alcohol beverages had 70% sales drop due to pandemic

Grado Alcohol beverages had 70% sales drop due to pandemic
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Realization of distillates and alcohol beverages producer company Grado LLC on export markets has drop by 70%, according to Giorgi Gobechia, Director of the company. Gobechia explained the reduction with the last two years of the pandemic, when the restaurants and bars were particularly closed.

Grado LLC is located in Kareli, Shida Kartli region of Eastern Georgia. Founded in 2015, Grado is the country's largest producer of fruit distillates. The company is exporting products in the following markets: the USA, the EU, China and Ukraine.

Contrary to the previous two years, the forecast of the company is more optimistic for the current year. More specifically, Grado director expects the return to pre-pandemic level.

“We only work for export. We do not supply products to the local market, because selling alcohol on the domestic market is not profitable. The excise is high on local market, while there is no excise or VAT for export. As for expectations, sales are slowly growing right now, and we expect that this season we will surpass the previous volumes," Giorgi Gobechia told BM.GE.

In regard to competitive advantages on foreign markets, company Chief explained that since the fruits and labor in Georgia are much cheaper than in Europe, Georgian alcohol is competitive abroad.

“In the US and European markets, our product of pear alcohol costs 4 euros per liter, plum alcohol - 3.50 euros. In Georgia, fruits and labor are much cheaper than in Europe, and this is one of the reasons why we are competitive,” Gobechia told BM.GE.