Anadolu Efes’ Russian operations account for the largest share of all of
its beer operations in terms of sales
The Moscow-Efes Brewery (“MEB”),
which was set up by Anadolu Efes in
1997, today operates with five breweries
in the cities of Moscow*, Rostov*, Ufa,
Kazan, and Novosibirsk. The strategic
partnership with SABMiller increased
the number of Russian breweries under
Anadolu Efes’ control to eight with the
addition of three belonging to SABMiller
in Kaluga, Ulyanovsk, and Vladivostok to
the existing five owned by Anadolu Efes.
The company also owns five malteries:
one in Moscow and the other four in
Kazan*. The portfolio of operations in
Kazan include a preform plant, whose
annual production capacity of about 1.3
million PET preforms, makes it possible
for Anadolu Efes to manufacture all of
the PET bottles that it needs.
In 2013 the total consumption of the
Russian beer market is estimated
to be around 87.1 million hectoliters,
which corresponds to a per capita
consumption of 61 liters a year.
According to the Euromonitor data for
2012, Russia ranked the world’s fourth
biggest beer market.
During the past five years, Russian beer
market has contracted by more than
20%, primarily due to the tightened
regulatory environment. As a result, the
average capacity utilization rate of the
brewing industry has decelerated to ca.
60% in the recent years. Consequently,
after an evaluation process by taking
into consideration of the technical,
logistical and financial points of view,
Anadolu Efes initiated a production
network optimization program in Russia.
Under this program, Anadolu Efes
decided to suspend its brewing and
malting operations in Moscow as of
1 January 2014, and to suspend its
brewing operations in Rostov in the first
quarter of 2014. Aggregate installed
production capacity at these two
locations amount to about 5.0 million
hectoliters of beer and 46,000 tons
of malt, which corresponds to 19%
and 26% of the total annual installed
beer and malt production capacities
of the company’s Russian operations,
respectively. The beer production
volumes at these locations will be
re-allocated to the company’s other
production facilities in Russia.
The decision was taken after the
review of the current trends in the
Russian beer sector and Anadolu Efes
believes that it will be able to improve
its competitiveness and efficiency and
ensure sustainable success in Russia
taking into account both the expected
synergies and the restructuring costs
associated with this decision.
* It has been decided to suspend the brewing and malting operations in Moscow as of January 1, 2014
and to suspend the brewing operations in Rostov in the first quarter of 2014.