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Average Markup from Cost to Shelf in Georgia is Around 90% - Deputy Minister

ვახტანგ ცინცაძე

Deputy Minister of Economy and Sustainable Development Vakhtang Tsintsadze stated that in Georgia’s supply chains, the average markup from production cost to retail shelf is around 90%, excluding VAT. On certain products, markups can be twice as high or more.

Tsintsadze noted that prices in Georgian retail chains are 20–180% higher than in comparable European markets. He also highlighted challenges faced by local producers in accessing major retail networks due to strict contractual conditions imposed by large chains.

GD Prime Minister Irakli Kobakhidze has similarly emphasized that high food prices in Georgia are driven by distributor and retail markups, announcing active engagement with companies, law enforcement investigations, and the potential use of antitrust mechanisms. Parliament is expected to form a special commission to examine food pricing publicly.

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