OPERATIONS

From North Iraq to Kazakhstan, from Jordan to Moldova, Efes Soft Drinks and Efes Beer Groups are reaching to customers all around the world.

Russia

Market with the largest share in sales volume

Anadolu Efes started its Russian operations, the largest within beer segment in terms of sales volume, with the start of production in Moscow-Efes Brewery (“MEB”) in 1999. The position in the Russian market was further solidified through the acquisition of Krasny Vostok Brewing Group, the then 7th largest player in the market back in 2006, which was followed by the alliance with SABMiller in 2012. Becoming our new shareholder after acquiring SABMiller in 2016, we sought to form a partnership with AB InBev operating in the Russian and Ukrainian markets in an effort to draw maximum benefit out of this partnership and the parties continue to work on the binding agreements.

Carrying out its operations with six breweries and three malt production facilities in Russia, Anadolu Efes has an annual total production capacity of 20.0 mhl of beer and 110 thousand tons of malt.

Growth momentum maintained in 2017

Contracted by more than 25% since 2010 because of regulations and excise tax increases, the Russian beer market is estimated to have contracted by mid-single digits in 2017 due to the restrictions on the size of PET bottles as well as unfavorable weather conditions particularly in the high season. The contraction is partly mitigated by the growth in the relatively new Draft-In-Off-Trade (“DIOT”) segment in which we captured our fair share. Euromonitor estimates the size of the Russian beer market in 2017 at 74 mhl with a per capita consumption of 52 litres.

We managed to gain market share by increasing our penetration in line with the growth trend in the modern trade channel as a result of monitoring the market dynamics closely. As always, our lead in the premium segment is maintained while we performed stronger in the mainstream segment. Consequently, Anadolu Efes continued to grow strong in 2017 despite the contraction in the market and strong base effect. New launches and various projects underpinned the powerful performance of our brands, which are supported by successful market executions. Our market share reached 15.0% by sales volume and 15.2% by value in 2017, according to Nielsen data.