Against the background of a stable start to 2021 in the Russian market, export sales of Baltika Breweries reached record values. The strong start to the year is the result of Baltika's implementation of its business strategy 2020-2022, which is aimed at tightly controlling costs and reinvesting the saved funds in innovations and strengthening its market position.
The market share of Baltika in the first three months of 2021 increased by 2.7 percentage points compared to the first quarter of 2020 year, amounting to 26.9%*. This was facilitated by investments in the launch and promotion of brands and the development of new sales channels.
Sales growth in Q1 2021 was demonstrated by both alcoholic varieties: “Baltika #7 Myagkoe” (launched in 2020), “Baltika #7”:+16%, Žatecký Gus: + 24%, Tuborg: + 27%, Kronenbourg 1664 Blanc: +57%, beverages with fruit tastes Somersby: +187% & Garage: +22%, and soft drinks, including energy drinks Flash Up: + 17%. "Baltika Pshenichnoe", "Baltika Temnoe" as well as non-alcoholic “Carlsberg 0.0 Pilsner” and "Baltika 0 Lime" were successfully launched in Q1.
Alcohol free beverages (Baltika 0 line and Flash Up energy drinks) showed an impressive increase in sales on the Internet: for the first quarter of 2021, the same volume of company products was sold on online sites as for the whole of 2020. In general, the growth in sales of Baltika non-alcoholic products in new sales channels (online, gas stations, vending machines and non-alcohol stores) in Q1 2021 year amounted to 350%. 12 gas stations, 340 non-alcohol outlets and 4 operators of vending machines became the new partners of Baltika.
The company's sales volume in HoReCa is gradually returning to the level of the beginning of last year. According to the results of Q1 2021, this figure did not return to the level of the first three months of 2020, but in March 2021, Baltika sales in HoReCa increased by 6% compared to March last year. However, the situation in this segment remains uncertain. At the same time, the company's sales volume in the channel of modern trade (national and local retail chains) increased by 28%.
Export sales of Baltika in the first quarter of 2021 in general and in March in particular reached their highest in the last 5 years. Export growth in the first three months amounted to 42.6% compared to the same period last year. The key markets for foreign trade were Kyrgyzstan, China, Mongolia, Georgia and Germany. In 2021, Baltika received the Best Exporter award in the Khabarovsk Territory and the North-West of Russia for the 2020 results. The recognition of the company's products abroad is evidenced by the fact that the “Baltika #7” and “Baltika #7 Myagkoe” brands won gold medals in 2021 of the prestigious Monde Selection international tasting competition. “Baltika #7 Myagkoe” was also awarded the silver medal of the London Beer Competition.
The volume of investments of the company during this period increased by 18% compared to Q1 2020, amounting to 757 million rubles. The preparation for the summer season was one of the key tasks and areas of investment in Q1 for Baltika. The funds were invested in the purchase of new, more environmentally friendly, refrigeration equipment, as well as beer bottlers and furniture for summer cafes. Another investment item was the purchase of equipment for the manufacture of non-alcoholic beer at a plant in Tula. Also, in Q1 2021, the company prepared the launch of biological treatment facilities in Rostov-on-Don and St. Petersburg.
On April 27, Baltika released the Sustainability Report for 2020. The 8% reduction of breweries’ CO2 emissions, ensuring the collection and processing of almost 50% of the volume of packaging produced and making the logistics “greener” are among the main achievements of the company.
Baltika Breweries LLC is one of the largest manufacturers of consumer goods in Russia. Baltika Breweries operates 8 breweries in Russia. The company is a significant part of the Carlsberg Group and its operations in Central & Eastern Europe region, which includes 15 more countries. Baltika Breweries LLC is the leading exporter of Russian beer. The company's products are exported to over 75 countries around the world. Thanks to the world class quality of the Baltika brands, they have received more than 670 Russian and international awards at professional and consumer competitions.
* Retail audit data in physical terms conducted by Nielsen Research Company with respect to urban and rural Russia markets.