The Georgian Competition and Consumer Agency (GCCA) has approved concentrations in the retail and distribution sectors of the alcoholic beverages and fast-moving consumer goods (FMCG) markets.
The first case involved a concentration by LLC “G.D. Alkos” through the acquisition of a 90% stake in LLC “Evercraft International”. Based on the data received and analyzed by the Agency, it was determined that in 2024, 215 companies operated in the high-alcohol beverages market, with a total market volume of 20,148,767.5 liters. The market concentration index (HHI) was 1,275.48, classifying it as moderately concentrated. “Evercraft International” LLC held a small market share, resulting in a minimal change in market concentration (ΔHHI = 1.04). Additionally, the distribution services market in 2024 amounted to 7,736,172,745.45 GEL, with a low concentration level and a small market share held by the entity involved in the concentration.
The second case concerned a concentration by “BMS” LLC through the acquisition of a 67% stake in “Euroline” LLC. According to the Agency’s analysis, in 2024, over 7,000 undertakings operated at the retail level of the FMCG market nationwide, with a market concentration index (HHI) of 690.98 units. At the distribution level, 85 companies were engaged in economic activities, with an HHI of 457. Both market levels were classified as low-concentrated.
According to the market analysis conducted by the GCCA, the structure of the assessed markets and the market shares of the parties involved indicate that the proposed concentrations do not have a significant impact on the relevant market and are compatible with a competitive environment.
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.
Reminder, in 2024, the GCCA verified 52,593 concentrations. In 14 cases where concentrations bypassed the Agency, fines totaling 288,400.02 GEL were imposed on the responsible parties, while approval was granted for 18 concentrations. As of 2025, the GCCA has approved 2 concentrations, with proceedings ongoing for 3 additional cases.
