The Russian beer market leader, Baltika Breweries, and the second largest fast food chain in Russia in terms of turnover (source: Euromonitor), Burger King, have signed a cooperation agreement. In 2018, Baltika will start supplying its products, including non-alcoholic beer, to over 500 Burger King restaurants nationwide.
Baltika Breweries is the leader of the Russian brewing industry and one of the largest FMCG companies, which is extensively expanding its sales channels. Among others, Baltika focuses on the HoReCa (Hotel, Restaurant, Catering) segment.
According to the agreement, starting with 2018, over 500 restaurants across the country will offer their customers several popular Baltika beers, including premium pale lager Baltika 7 and world-renowned Danish Tuborg. Several points of sale, including those in airports, will also offer Zatecky Gus Cerny dark lager and popular non-alcoholic Baltika 0 — the leader of the Russian non-alcoholic beer market with a 60% share.
Both the HoReCa segment and the Russian catering market in general have undergone significant changes. The main reason of such developments is the drop in personal incomes as a result of the 2014 crisis which made some consumers desert to cheaper catering facilities. This is why amid closing expensive restaurants, restaurant chains managed to survive the crisis and even increase their PoS number by 4.6% in 2017 on a YOY basis (source: RBC Market Research). Bearing in mind these market tendencies, Baltika opts for cooperation with Burger King, one of the largest fast food chains in Russia.
Alexandr Voronov, HoReCa Sales Manager, Baltika Breweries LLC, part of the Carlsberg Group: “Cooperation of market leaders, such as Baltika and Burger King, is a reasonable stage of business expansion and a good example of keeping up with the market tendencies. For Baltika, this union is another step towards its consumers who can now supplement their Burger King order with a glass of their favourite drink”.
Dmitry Medovy, CEO, Burger King Russia: “To be listed in the Burger King menu, a product must correspond to a set of strict requirements to safety and quality. This directly affects our business reputation and the interests of our consumers. Baltika is the leader of the Russian beer market who has acquired its reputation as a reliable partner. We hope that the agreement will be the beginning of a long-term efficient cooperation of like-minded teams. Moreover, this cooperation is a reasonable extension of our focus on full localization of our products”.
Baltika Breweries, part of the Carlsberg Group, is one of the largest companies in Russia in the sphere of consumer goods production, №1 on Russian beer market since 1996. Baltika Breweries has got 8 breweries in Russia and a large brand portfolio. The company is being the significant part of Carlsberg Group and its Eastern Europe region, which also include Azerbaijan, Belarus, Kazakhstan, Ukraine. Baltika Breweries is the major Russian beer exporter: with the products available in more than 75 countries of the world.