Prime Minister Irakli Kobakhidze spoke at today’s meeting of the government’s coordination commission on food product prices, which was attended by representatives of distribution companies. The discussion focused on the high retail markups in Georgia and the need to balance business and social interests.

Kobakhidze noted that preliminary research shows an average markup of 86% in Georgia, which he described as “quite high.” Of this, 44% comes from distribution, while the share attributed to supermarket chains is comparatively smaller. He compared this to Germany, where wholesale-to-shelf markups typically range from 20% to 30%, highlighting the significant difference in prices.

“Preliminary research shows a very high markup from the border to the shelf in Georgia, averaging 86%, which we consider quite high. Distribution alone accounts for 44%, while the share of supermarket chains is smaller. Overall, this 86% results in prices that are much higher than European levels – in some cases, 50% higher, or even double or triple. Naturally, when businesses act according to their own strategies, there are many positive effects, but a social factor also comes into play, which is equally important. It is essential for us to balance these interests and collectively ensure we look after citizens’ interests and try to reduce prices as much as possible,” Kobakhidze said.

He added that such meetings are crucial for the government to receive firsthand information from the sector on where challenges lie and what resources exist for lowering prices.

The session included 15 representatives from distribution companies alongside the head of the Distributors’ Business Association. Similar meetings are planned for the coming week with food producers, pharmaceutical companies, and fuel suppliers to address pricing issues across sectors.