Our largest market in terms of sales volume
Anadolu Efes commenced its Russian operations with the establishment of Moscow-Efes Brewery (MEB) in 1999. The company solidified its position in the market by the acquisition of Krasny Vostok Brewing Group, the then 7th largest player in the market in 2006, and by the strategic alliance with SABMiller in 2012.
With six breweries and four malteries, Anadolu Efes’ annual production capacities in Russia amount to 21.7 million hectoliters of beer and 130 thousand tons of malt.
The market leader in premium segment in Russian beer market
Owing both to regulatory changes and to higher excise taxes, the Russian beer market has contracted by more than 25% since 2010.
At the beginning of the year, Anadolu Efes announced that the decline in Russian beer market in 2015 is expected to be more than the decline in 2014 where the market faced mid-to-high single-digit contraction and that company’s own volume performance would be parallel to the market’s performance overall. In light of ensuing developments, the guidance for the market was kept intact however company’s own volume expectation was revised as underperform the market slightly. Accordingly in 2015, the Russian beer market declined by high single-digit inline with expectations.
Anadolu Efes’ Russian operations’ sales mix in 2015 shows the impact of the growth in premium brands combined with restrained declines in the lower-mainstream segment as well as the shift among consumers towards smaller packaging alternatives before the Brewers Association’s voluntary decision on the use of PET packaging.
In the last quarter of 2015, the rate of decline in the Russian beer market vs prior year continued to slow, helped by unseasonably warm weather and promotional activities. Successfully managing its position in the Russian beer market in line with its planned direction, Anadolu Efes increased its market shares both in modern channel and in the premium and upper-mainstream segments.
Strategies that focused strongly on such issues as sales & distribution networks, in-store executions, and brand management were employed in our Russian operations, and our premium brands accounted for a bigger share of our total sales volume in 2015 .
Even though Anadolu Efes increased its market share in modern channel in 2015, its total value share was down slightly to 15%in 2015. On a year-
on-year basis however the company registered growth in market share
in both the premium and the upper-mainstream segments.