Business of Carlsberg Azerbaijan revived growth in 2017
Baku, Azerbaijan, Feb. 16
In 2017, the Carlsberg Azerbaijan Company managed to stop the decline in sales volumes, revive the growth, as well as to launch a number of projects that will play a positive role for the company's sustainable development in the longer term. Carlsberg Azerbaijan keeps the leadership positions in the beer market of Azerbaijan.
The drop in the beer market, and consequently the fall in sales volumes of Carlsberg Azerbaijan, which began in 2015 due to macroeconomic reasons – devaluation of the local currency and a drop in consumption, was stopped in 2017. This allowed the company to return profitability and rehabilitate the business after nearly two years of decline.
In 2017, the company's shipments increased by 9 % compared to the previous year, which was due to both the normalization of the economic environment in the country and the series of important steps taken by the company's management for the optimization of the business and improvement of its efficiency. The growth in the draught beer channel (on-trade) was undoubtedly an essential contribution to the overall result; the growth in shipments within the channel was about 25% in comparison with the previous year.
Vyacheslav Maltsev, CEO of Carlsberg Azerbaijan: "Within the past year, we have finally managed to stop the negative dynamics observed in the beer industry and, consequently, in our results, and I am pleased to say that the industry is returning to the growth. Besides the company's efforts, the strengthened dialogue with government authorities made an important contribution to the business normalization. It makes possible to get point of the brewing industry across the issues being vital for us, and as a result, to have a more consistent and predictable legislative regulation encouraging the development and the industry, as well as the economy in whole. Maintaining this approach is critical for us, as for a foreign investor; the development of constant dialogue and the state support means a lot in view of stability and assessment of the business prospects in a particular country."
We should note that the year became significant for the company in terms of refreshment of the brands portfolio. As the largest brewery in the country and part of one of the world's brewing leaders, Carlsberg Azerbaijan strives to bring new varieties and tastes to the beer and drink market of Azerbaijan. Following a thorough study of the local consumer preferences, the company chose the best alcoholic and non-alcoholic brands being successful in dozens of markets of the Carlsberg Group: over the past year Azerbaijanis were offered brands such as Carlsberg, Kronenbourg Blanc, Holsten, Seth and Riley's Garage Hard Lemon in different packaging forms, and at the end of the year the company entered the energy drinks market with the Flash Up brand, that won strong positions in several Eastern European countries.
Carlsberg Group was founded in 1847 and at is one of the world's largest beer producers today. Its products are represented in 150 countries, the company's portfolio includes more than 140 beer brands. The total number of Group's employees is more than 42,000. The total amount of the company's investments into the development of the Carlsberg Azerbaijan brewery is about 50 million AZN, annual budget contributions are about 15 mln AZN.