According to Aleksandre Ratishvili, head of the bakery manufacturer “MCB Georgia”, at a meeting between Georgia’s Prime Minister and Georgian manufacturers within the Cross-Government Coordination Commission on food prices, all problems concerning manufacturers were discussed.

He stated that price reductions are possible.

“We discussed all the problems that concern us as manufacturers and which are within the government’s and parliament’s power to resolve. Price reductions are possible. I can genuinely confirm this. Manufacturers operate on very low margins, but the journey from production to the shop shelf is precisely where extraordinary mark-ups occur. When manufacturers are dependent on retail chains, the conditions are very difficult: cashback, entrance fees, and payment terms. The product sells in 2-3 days; in our case, they pay us on a 45-day settlement basis, which means a shortage of liquid funds. We have to turn to banks, whilst they [retailers] are flourishing,” Aleksandre Ratishvili stated.

Asked why the issue hadn’t been regulated before now, Ratishvili said there are many reasons.

“For years, we’ve had numerous meetings in the form of various business associations, we’ve raised this issue, but for reasons I cannot discuss, it hasn’t happened until now. This is an enormous sector and the only sector in the country where there are no rules of the game whatsoever. I want you to understand me clearly: I am a free businessman, a free person, and all business should be free. Any crude interference is unacceptable to me, whether in the form of harsh regulation. I wish them well, too; they are our partners. Without the chains, we couldn’t sell our products. But should I alone prosper, should I alone benefit whilst you go bankrupt? I’m speaking about my own situation.

Regarding the Anti-Corruption Agency’s request for documents from various companies, Ratishvili noted that this is a normal process.

“There’s no interference as yet. No one has entered to punish someone or to halt or destroy someone’s business, but rather to collect documents, which is a normal process. We may not like bringing the security services into business, but what’s happening is a far worse process,” Aleksandre Ratishvili noted.