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.

Turkey

Operating with 3 breweries, 2 malteries and 1 hops processing facility in Turkey, Anadolu Efes is the largest brewer of the country. The company has an annual total production capacity of 7.6 mhl of beer and 118 thousand tons of malt in Turkey. In 2017, we estimate that the sales volume of Turkish beer market was around 9.0 mhl, per capita consumption was 11 litres while the beer market was flat compared to 2016.

2017 started rough for the Turkish beer market with excise tax increases and concerns over security issues. Although Turkish economy recorded a significant growth in 2017, the industry remained under pressure during the year due to the continued deterioration in consumer confidence and lower than expected tourism activity. Inflation pressures triggered by the recent volatility in exchange rates intensified affordability issues.

Anadolu Efes tried to respond to the challenges the industry faced in the most powerful way by refreshing its strategy in Turkey operations. The relaunch of “Efes” brand was done with a great event organized in July as freshness and quality formed the essence of our portfolio strategy. The decrease in the shelf life from 1 year to 6 months was found very innovative and revolutionary. Despite the ongoing tough competition throughout the year, domestic sales volumes recorded growth in the last two quarters thanks to the successful executions following the relaunch. Our new taste, new packaging and new brand images drew great attention. Although it is too soon to fully evaluate the outcomes of our refreshed strategy, we believe we will see it justified in the upcoming period.

Another important indication of our branding studies was the “Global Beer Brand” award, which was granted to “Efes Pilsen” at World Branding Awards, one of the most prestigious brand awards in the world.

By investing in our brands, best market executions without compromising efficiency, and our sustainable and robust relationship with our shareholders continued to be the founding pillars of our strategy which was refreshed with the relaunch. In 2017, total domestic sales volume of our Turkey beer operations was 5.8 mhl. Net sales revenue increased by 10.4% to reach TRL 1.6 billion supported by price increases.

Competitive advantage secured by the most innovative steps

Targeting a systematic, efficient, profitable and sustainable growth in Turkey as well as international markets and in all business segments it operates, Anadolu Efes implemented its business plans accordingly also in 2017 with the right strategies. Through its efficient and dynamic structure with the flexibility to respond quickly to the needs of the market, Anadolu Efes combines its effective and agile decision-making processes with its deep-rooted experience. Anadolu Efes continued to take the most innovative steps in 2017.

In addition to its multi-brand strategy, Anadolu Efes maintained the positive contribution of different SKU alternatives offered to consumers in 2017, as well.

Creating competitive advantage through continuous innovations in terms of product development and business concept, Anadolu Efes went on to take measures to improve processes in a simpler, faster and cost-conscious manner.