Baltika Continues to Lead the Russian Beer Market and Expands the Export Line

may 1, 2018

Baltika is No. 1 in the Russian Beer MarketBaltika is No. 1 in the Russian Beer Market

With its market share of 31%* against an estimated 4-5% market decline, Baltika is the leader of the Russian beer market.

Baltika Breweries is one of the largest taxpayers in the regions of its presence. In the first quarter of 2018, the tax transfers to budgets of various levels amounted to more than 11 billion rubles with about 65% of them being excises. 

According to the results of the first quarter of 2018, the positive dynamics was demonstrated by the following brands: Arsenalnoye (growth of the brand's share by 0.3 pp*), Rizhskoye Firmennoye (growth of the brand's share by 0.1 pp*), Bolshaya Kruzhka (growth of the brand's share by 0.8 pp*) and Zhigulevskoye (growth of the brand's share by 0.9 pp*). In this segment, the company provides high quality at an affordable price.

Baltika also holds the largest shares among national (38%*) and regional (18.8%*) brands.

The brand share of Baltika 0 showed an increase of 0.1 pp*. At the same time, the Russian segment of non-alcoholic beer increased by 30.5%* in the first quarter of 2018, compared to the corresponding period last year. Baltika is the undisputed leader in the segment with a share of more than 50%*. Continuing to develop the non-alcoholic beer segment, Baltika launched a large-scale production of Baltika 7 Non-Alcoholic.

In the first quarter of 2018, following the global trend for the development of low-alcohol brands, the company began selling a new lingonberry variety in the Seth&Riley's GARAGE line. In general, this brand demonstrated an increase of 0.1 pp* in the first quarter. 

In the first quarter of 2018, Baltika had a share of 30.2%* in the modern trade channel and was No. 1 in the traditional trade channel with a share of 30.3%*. In addition, Baltika is the No. 1 company in the promising and fast-growing draft beer market (DIOT) with a market share of approximately 20%*.

Since the beginning of 2018, more than 500 Burger King establishments across Russia started to serve several popular varieties of the brewery. This was the result of signing a cooperation agreement between Baltika and Burger King, the second largest fast food chain in Russia (according to Euromonitor). Baltika also started cooperation with the Teremok, St. Petersburg home food restaurant chain; now, the company's products can be purchased at more than 130 food courts in the city. In March 2017, Baltika started to deliver the famous Baltika 6 porter on tap to HoReCa establishments (sales in hotels, restaurants, cafes) and beer boutiques throughout Russia.

Baltika's export grew by 7%

The export line of Baltika Breweries continues to show steady progress. In the first quarter of 2018, the company's exports grew by 7% in volume compared to the corresponding period last year.

The countries of Central Asia are demonstrating positive dynamics due to the purposeful development of the non-alcoholic portfolio. The countries of Transcaucasia are also showing growth due to the expansion of the portfolio and the launch of new brands.

Export sales to non-CIS countries are steadily growing. For example, sales to China more than doubled, mainly due to the expansion of the portfolio and the start of cooperation with new distributors. Sales to South America are showing more than twofold growth, mainly due to the start of cooperation with new distributors. Sales in Israel are actively developing, providing an increase in sales by 50% in this region due to the expansion of the portfolio and the start of cooperation with new distributors. The work on the introduction of the company's products to the national chains of Europe continues. Now, Baltika can be found in such networks as Aldi, Tesco, Selver and Rimi.

Baltika retains its presence in more than 75 countries, in 43 of which it is the only Russian beer exporter.

* Data from retail audit of Urban and Rural Russia markets by the Nielsen research company.

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