Georgian Prime Minister Irakli Kobakhidze has pledged to take active steps to address high consumer prices, stating that the government will engage directly with distribution companies and supermarket chains to secure price reductions. In a video address, he warned that antitrust mechanisms would be used if necessary, citing successful international precedents.

The Prime Minister also called on law enforcement agencies to conduct a comprehensive investigation into the issue to determine whether any signs of criminal activity exist. In addition, he urged the Georgian Parliament to establish a special parliamentary commission with the authority to examine pricing practices using relevant oversight tools.

Kobakhidze highlighted a significant price gap between Georgia and Europe, noting that identical international brand products often cost substantially more in Georgia. According to his comparison with France, sunflower oil is 34% more expensive, pasta 97% more, rice 180% more, butter 30% more, cheese 42% more, and chocolate 47% more in Georgian supermarkets.

The Prime Minister attributed this disparity primarily to high mark-ups by distributors and retail chains, which average around 86% from the Georgian border to the checkout counter. He noted that public concern over food prices prompted the government to analyze pricing structures, including the trading practices of major supermarket chains.

Kobakhidze further stated that net profit margins of some retail chains in Georgia range from 7% to 14%, significantly higher than the European average of about 2%, despite higher operating costs for supermarkets in Europe. Distribution companies in Georgia, he added, also post relatively high net profit margins, typically between 6% and 13.5%.

According to the Prime Minister, excessive mark-ups and financial pressure on suppliers have created a situation in which Georgian producers often find it more profitable to export their goods rather than sell them domestically. As a result, Georgian-made products are frequently found on store shelves as imports, a trend he described as contrary to the state’s interest in supporting local production and reducing reliance on imports.

Kobakhidze also pointed to the rapid expansion of retail chains as a contributing factor. Over the past five years, the number of chain supermarkets in Georgia has doubled, bringing the total to 113 supermarkets per 100,000 people, compared to 45 in Germany and 62 in Austria. He suggested that the costs of this expansion are being passed on to consumers through higher prices.

Finally, the Prime Minister identified several practices that may be driving inflated prices, including network cashback schemes, entrance fees for shelf space, delayed payments to suppliers, and the reflection of new store opening costs in product prices. Most concerning, he said, are indications that market players may be coordinating their actions, potentially operating under cartel-like principles—an issue that, he emphasized, requires further in-depth analysis.