Some food categories in Georgia are sold mostly through promotional discounts, with 80–90% of total sales taking place during promotions, according to distributor David Alavidze, director of a Georgian Distribution Company.
Speaking at a session of the Parliament’s temporary commission studying price formation, Alavidze said products such as vegetable oil, margarine, ketchup, and mayonnaise are particularly dependent on promotional pricing.
He explained that if the imported cost of a product is about 10 GEL, it is typically sold on promotion for around 12 GEL, with the margin roughly split between the distributor and the retail chain.
According to Alavidze, around 80% of these products are sold at promotional prices, while the remaining 20% may be priced at 16–17 GEL on shelves. However, he noted that without promotions the products rarely sell.
The discussion took place during a meeting of the Parliamentary Commission studying the pricing structure of food products, medicines, and fuel, where distributors reviewed the market structure, pricing chain, and operational processes of the food sector.
