In Q3 Baltika Breweries, part of the Carlsberg Group, confirmed its unconventional leadership and increased sales volumes by 6% and price/mix compared to the same period of the previous year.
According to Baltika Breweries internal data, Russian beer market continued to show positive dynamics driven by good macroeconomy and weather. The market grew by an estimated 4% in Q3 and 2,6% as a result for 9 months compared to the same periods of the last year.
In Q3 Baltika Breweries has increased its sales volumes by 6% compared to Q3 2017. Price\mix has also improved In the reported period. Such results became possible through effective implementation of company’s planned commercial initiatives. This allowed the company to continue investing into the business development.
Baltika Breweries contributes a significant portion of tax revenues in the regions in which its headquarters and breweries are present. Over 9 months 2018 Baltika’s total tax contribution amounted to almost 47 bln RUR, 66% of which are excise duties (30.9 bln RUR).
Baltika Breweries is the undisputed leader* of Russian beer market that is proved by respectable rating results. For example, according to Infoline research «Food and drinks production in Russia. 2017 results and 2018 trends. 2020 development perspectives». Baltika Breweries ranked first in drinks, coffee and tea production section. Baltika Breweries was also included to the list of the 500 biggest Russian companies in terms of revenue according to RBC version, being significantly ahead of the closest competitors.
Jacek Pastuszka, president of Baltika Breweries LLC, executive vice president Carlsberg Group Eastern Europe Region: «We continued to strengthened Baltika Breweries leadership on the Russian beer market: improved sales volumes and price mix. All this has become possible due to our brands high quality, appreciated by our consumers in Russia and in 75 more countries of the world. Good financial results allowed us to invest to our strategic priorities – this will contribute to our company long term sustainable growths».
In Q3 2018 Baltika Breweries continued to focus on its core brands development and maintained high level of marketing activities.
Long standing non changing premium segment leader and export flagship Baltika 7 continued to show positive dynamics (brand share growth + 0,2 p.p.). Besides, superpremium Kronenbourg 1664 (+0,2 p.p.*) and premium Seth&Riley’s GARAGE (+0,2 p.p.*) also improved brand share. Consumers appreciate the excellent quality at an affordable price of Arsenalnoye (brand share increase of 0.7 p.p.*), Zhigulevskoye (brand share increase of 1.6 p.p.*) and Bolshaya Kruzhka (brand share increase of 0.5 p.p.*).
Baltika 0 company key non-alcoholic brand showed brand share growth of 0.2 p.p.* Company non-alcoholic brand portfolio has been widened by new imported Kronenbourg 1664 Blanc Alcohol Free.
High quality allowed company's brands to win prestigious awards of Russian and international contests. According the results of International Beer Challenge 2018 the international tasting contest Baltika 0 Wheat Unfiltered has received the golden medal, silver awards were taken by classic lager Baltika 3 and Baltika 6 Porter and bronze medals by Baltika 4 Original, Baltika 8 Wheat and Arsenalnoye Traditsionnoye. Famous imported Belgian beer Grimbergen has become laureate of British prestigious contest World Beer Awards 2018. Baltika 3 and Arsenalnoye won first prizes for all tasting characteristics according to 60\40 test result, held by independent sociological center Hi-kvadrat.
Premium lager Rizhskoye export, which is sold in Bristol shops throughout the whole country, has added to the company brand portfolio.
Company export continues to show stable success. For 9 months 2018 Baltika export grew by 32% in volumes compared to the same period of the previous year.
In the reported period sales volumes in the Middle Asia countries show 27% growths, Transcaucasian countries 9% increase and Far Abroad countries 12% increase.
Markets of Asian-Pacific, South America and Near East area also continued to show stable positive dynamics.
Sales of new store keeping unit Baltika 0 Wheat in glass bottles started in European and Baltic countries. Online sales of popular on the Chinese market Baltika 3, Baltika 7 and Baltika 9 via biggest B2C e-commerce platform pilot project was launched.
Baltika products are available in 75 countries, in 43 of which Baltika Breweries is the only Russian beer exporter.
* Global Company-meter Nielsen retail audit, Urban & Rural Russia