The study aims at offering recommendations to improve Asian Development Bank and other development partners; assistance to developing countries in creating conditions to enable inclusive growth through their projects and operations. For that ISET Policy Institute will conduct in-depth analysis on income distribution, labor market, and other aspects of inclusive growth.
The objective of the project is to analyze options for a private, Georgia-based company to expand its operations. ISET-PI was commissioned by MGeorgia, holding company of JSC ”Chateau Mukhrani” and “Georgian Wines and Spirits Company” Ltd (GWS).
During the last 12 months, the Georgian authorities have been conducting interesting experiments designed, so it seems, to test the resilience of domestic beer producers. In September 2014, the industry was hit by Article 171 of the Civil Code, prohibiting alcohol consumption in public places. The beer market, 97% of which is supplied by local producers, has immediately shrunk by 22% (in physical volume, see chart), in annual terms.
The Georgian wine industry had a couple of very good years in 2013 and 2014, following the opening of the Russian market. Exports skyrocketed, prices of grapes followed suit. For all the talk about diversification, within just two years, Russia’s share in the total exports of Georgian wine shot up from 0 to almost 68%.
Food prices in the largest supermarkets of Georgia have been on decline over the last couple of months. Prices started adjusting downwards in July 2015 and the trend persisted in September. According to ISET Policy Institute’s Retail Food Price Index (Retail FPI) in September 2015, prices were 1% lower compared to August 2015.