2123.14 tons of tea worth US$ 4, 583, 430 have been exported from Georgia during Jan-Nov 2020. The value is up 18% as compared to the same period of the prior year. Likewise export, import has shown growth trend, being up 7% this year.
With US$1 844 230 or263.24 tons, Azerbaijan has been the top exporter of tea from Georgia during Jan-Nov 2020. Following Azerbaijan, the second top exporter was Turkey, US$ 1, 683, 000 or 516.14 tons and the third one was Mongolia – US$ 3, 055, 560, or 666.61 tons.
Tea export from Georgia valued US$ 3, 885, 720, or 1779.21 tons during Jan-Nov 2019. Similar to the current year, Azerbaijan - US$1, 620, 450 and Turkey - US$1, 085,430 were top tea exporters from Georgia.
2562.83 tons, worth US$ 9, 410,060 of tea was imported to Georgia during Jan-Nov 2020, up from US$ 8, 781, 520 or 2260.15 tons from the same period of the previous year. With US$ 4, 414, 800 or 716.04 tons Azerbaijan is the top tea imported to Georgia. It is followed by Sri Lanka - US$ 2,032, 500 or 460.65 tons and Russia - US$ 1, 690,020 or 268.53 tons.
Tea import from Azerbaijan amounted to US$ 4,003,230, 644.53 tons last year, the value was US$ 1, 931, 000 or 582.63 tons in the case of Sri Lank and US$ 1, 691, 910or 259.96 tons in the case of Russia.
According to Euromonitor International’s latest report related to the Georgian tea market as of 2019, local production of tea continued to experience a revival towards the end of the review period, supported by the government’s state program to help finance and rehabilitate abandoned plantations from the Soviet era. The program’s aim is to pass tea plantations to local players free of charge if they meet certain criteria for the production of tea, in addition to guaranteeing that they intend to use the area for tea production.
Local tea manufacturer Geoplant Ltd with its brand Gurieli strengthened its slim leadership of tea in 2019, gaining value share following the exit of smaller brands under “others” in the country, and widening the gap with its closest competitor Unilever. The latter, however, offers leading brand Lipton and benefits from strong advertising, which has helped to increase its awareness amongst local consumers over the years, the report reads.
Pursuant to the report, local players are continuing to gain share within tea, following devaluating currency which is making it increasingly expensive for imports to enter, while the cheaper local currency does not adversely affect the unit price of local production. The government’s support in encouraging local production through incentives to restore old tea plantations in the country is likely to lead to greater competition with the category with a stronger focus on quality rather than just pricing.
