Georgia: The Competition and Consumer Protection Agency of Georgia (GCCA) recognized that the concentration in the field of supplying children’s food products is compatible with the competitive environment. In particular, it concerns the concentration implemented by F/P Giorgi Eyanadze through the purchase of 70% stake in Fine Tree International Ltd.
Based on the specifics of the economic agents’ activities and the range of their products, the market analysis of the agency paid attention to the evaluation of the markets of the following products:
- Breast milk replacement adapted mixture for children aged 0-12 months;
- Baby milk for children aged 1 to 3 years;
- Milk and non-dairy porridge;
- Ready-made products such as puree, yogurt, and “The pudding”.
Based on the information requested by the agency from economic agents active in relevant markets, it was determined that in 2025, the import level of baby food products will be:
- Mother’s milk substitute adapted mixture (0 to 12 months), the total market volume was 40,669,793 GEL, and the HHI index of market concentration was 1383.45 units.
- In the direction of milk (for children aged 1 to 3), the total market volume was 17,794,895 GEL, and the HHI index of market concentration was 1893.41 units.
- In the direction of milky and non-dairy porridge, the total market volume was 13,847,298 GEL, and the HHI index of market concentration was 1985.65 units.
- In terms of ready-made products of baby food (puree, yogurt, “pudding“, and others), the total market volume was 13,551,166 GEL, and the HHI index of market concentration was 1702.8 units. 11 economic agents were operating in each relevant market.
The agency has further studied the target of purchasing shares in the company – the relevant markets of F/P Giorgi Eyanadze’s inter-dependents and economic agents operating as of today. Specifically, in the case of “Bidi Plus” LLC, it was defined as relevant markets – household chemicals, hygienic and self-care products, and in the case of “Bidi Holding” LLC, the consulting service market.
The Georgian Competition agency found that the relevant markets for the supply of baby food products are moderately concentrated, and the market shares of the person participating in the concentration are small. In addition, the relevant markets for household chemical, hygienic, and care products and consulting services are low, with little market share of Bid Plus Ltd and Bid Holding Ltd.
