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Baltika has started implementation of new long-term strategy

In 2020 Baltika Breweries, part of Carlsberg Group, started implementation of a new 2020-2022 business plan, strengthening the business in a very competitive environment.

In 2019 Baltika increased its revenue per liter by +3%* due to positive price/mix and grew its sales to export markets compared with 2018. The competitive environment was very challenging throughout the year and as a result Baltika total sales volumes were down by 8%. The positive price/mix was driven by price increases in late 2018 and early 2019, mix improvements from growth of craft & speciality and less sales of economy beer brands.

Lars Lehmann, EVP Carlsberg Group Eastern Europe & Baltika Managing Director: “We are not satisfied with our results in Russia in 2019, but the rest of our businesses in Eastern Europe performed well. The competitive environment in Russia is expected to be very tough in 2020 with margins under pressure as we are re-balancing our business towards top-line. To improve the results of Baltika Breweries is a multi-year project, where we strengthen our core brands and our position in growing segments and channels. We will do that via innovations, stronger execution and tight cost control.”

Implementation of the new business plan has already started. From November 2019 new Carlsberg packaging was launched including a new bottle. In December 2019 new packaging for non-alcohol Baltika 0 in cans was launched. Baltika novelties has just been launched like strong lager Baltika 9 Cherry, legendary stout Baltika 6 and Vienna lager Baltika 4 in cans. December 11, 2019 Baltika Breweries signed a partnership agreement with Russian Ice Hockey Federation, which will last till 2023 and will become an exciting platform for Baltika brand promotion.

In 2019 Baltika was the first FMCG-company to launch vending machines with automatic system of pouring beer SmartTap. The first vending machines were located in supermarkets chains in Moscow, Rostov-on-Don, Saint-Petersburg, Anapa, Gelendzhik, Sochi, Krasnoyarsk, Yekaterinburg, Rostov and Volgograd.

Baltika Breweries keep developing its export and in 2019 earnings of the company’s export increased 11% compared to the last year. Baltika export its products to 75 countries and in 43 of them Baltika is the only Russian beer brand present.

Implementing the Together Towards Zero sustainability strategy, in 2019 Baltika enlarged the infrastructure and partnerships under the project of separate waste collection and recycle of packaging waste “Benefit your city”. The company contracted with 19 new regional operators and recycling companies and reach of the project grew to 10 000 recycle containers. Moreover, Baltika implemented its own pilot project with Russian-made reverse vending machines installation for PET and aluminum cans together with supermarkets with healthy food Vkusvill. As a result of the project, Baltika exceeded the statutory collection standards for each of the categories of used packaging and sent to recycle more than 100 000 tons of waste. Including 12 000 tons of PET, 6 400 tons of aluminum and 59 000 tons of glass.

Tax from Baltika for the 2019 state budget amounted to 56,1 bln rubles with 66% as excise taxes (37,3 billion rubles), and the company's total amount of investment — 2,8 billion rubles. Biological waste water facilities at three breweries of the company, in Novosibirsk, St. Petersburg and Rostov-on-Don were one of the main investment. Biological waste water facilities provide high quality of wastewater treatment, it is reliable in operation and reduce consumption of electricity. The new facilities allow Baltika to use the generated biogas and save about 8% of natural gas for the boiler plant and reduce carbon dioxide emissions.

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* from this point onward — Carlsberg Group internal data.

Baltika Breweries LLC, a part of the Carlsberg Group is one of the largest producers of consumer goods in Russia. Baltika owns 8 breweries in Russia and has a wide brand portfolio. The company is a considerable part of the Carlsberg Group and its Eastern Europe region, which also includes Azerbaijan, Belarus, Kazakhstan and Ukraine. Baltika Breweries is a top exporter of the Russian beer: the products of the company are present in more than 75 countries around the world. Thanks to the superior quality, the Baltika brands gained more than 670 Russian and international awards in the professional and consumer competitions. Find out more about the company on the site or on the Vkontakte official page of the company.

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