Georgia PM: supermarket mark-ups driving food prices far above Europe

Georgia’s Prime Minister Irakli Kobakhidze has claimed that high mark-ups by distributors and supermarket chains are the main reason why food prices in the country significantly exceed those in parts of Europe.

In a video address focused on consumer prices on Wednesday, Kobakhidze said comparisons of identical international brands sold in large retail chains in Georgia and France revealed substantial differences. According to the government’s analysis, sunflower oil was 34% more expensive in Georgia, pasta 97%, rice 180%, butter 30%, cheese 42% and chocolate 47%.

The prime minister said public concern over rising food costs was justified and that the government had examined both retail pricing practices and the structure of mark-ups along the supply chain.

He argued that the gap was not primarily caused by production or import costs, but by what he described as excessive margins added after goods enter the country. 

According to Kobakhidze, the combined mark-up applied by distribution companies and supermarkets from the border to the shelf averages 86%.

Kobakhidze said the findings highlighted structural problems in the retail sector and suggested that consumers in Georgia were paying significantly more than their European counterparts for basic food products sold under the same international brands.

the PM added the government would engage directly with distributors and supermarket chains in an effort to reduce prices for consumers. He added that, if necessary, Georgia would consider using antimonopoly mechanisms already tested in other countries.

He also called on law enforcement agencies to examine the issue in detail and determine whether the activities of specific market players show signs of criminal wrongdoing. In addition, Kobakhidze urged parliament to establish a special parliamentary commission to assess the situation using legislative oversight tools.