Starbucks Plans to Open a Coffee Factory in Tbilisi

According to Kommersant information, Starbucks Corporation has an intention to enter the Georgian market. The company is planning to sign a long-term agreement with the country’s government, to construct a coffee factory, and to open a coffee chain in Tbilisi.

A representative of the City Hall told the journalist about preliminary agreements. He pointed out that no contracts had been signed yet, but that could happen any time soon as far as the parties had reached mutual agreement.

The factory is to be constructed in the suburbs of Tbilisi and can also include a museum of coffee, just as in many other places around the world.

Kommersant sources in the country’s government do not give any specific information about exact dates, but they note that the US company may be also willing to turn Tbilisi into a regional hub that would promote projects in the South Caucasus.

Such interest to the Georgian market can be provoked by the growing tourist traffic. In 2016 the country was visited by 6 million tourists which is almost twice the size of the population of the country. Among other reasons specialists name the competition between Starbucks and Dunkin’ Donuts. The latter has already opened a big chain of its coffee shops in Tbilisi.

According to bizzone.info, Georgia is a very prospective market, cause Georgians tend to be very active coffee consumers , though almost half of the coffee in the country is instant. And the demand for coffee keeps growing. Over 2016 it showed the 30% increase.

At the same time the market of coffee beans and ground coffee has a great potential for development. There are not that many coffee machines in the country, so this sector has not showed any significant growth so far. Still, it can be one of the most prospective market niches.