AB InBev Efes announced Q1 2021 results

AB InBev Efes announced its results for Q1 2021. The company was established in Russia and Ukraine through a merger between Anheuser-Busch InBev (AB InBev), the world’s largest brewing company, and Anadolu Efes, a regional beverage company with leading positions in all its operating markets.

The Q1 2021 saw strong growth rates in the brewing market: according to the Rosstat data, beer production increased by 6.1% in 2021 vs. 2020.

“We positively assess the beginning of 2021 as the Q1 indicators look encouraging. However, the economic situation in the country remains tense, consumers still have to cut costs while focusing on special offers and promos. That is why we are very careful in assessing the prospects for the whole year. Moreover, a number of discussed regulatory initiatives, such as the minimum allowable retail price or the tightening of brewing technical regulations, are of concern. Hopefully, we will be able to achieve reasonable regulation of the brewing market by joint efforts, which will have a positive effect not only on the industry but also on the economy as a whole” 

Dmitry Shpakov, CEO of AB InBev Efes

In Q1, AB InBev Efes brands saw positive dynamics in different price segments. BUD showed the highest volume growth rates of 27%, Spaten (18%), Essa (14%), Stella Artois (13%), Corona Extra (10%). The company’s non-alcoholic brands also showed sustained growth, with their sales through the e-commerce channels – online platforms and aggregators – showing an increase of 400% year-on-year. Imported and premium brands – Stella Artois Non-Alcohol, Hoegaarden 0.0, Becks Non-Alcoholic, and BUD Alcohol Free, – enjoyed the strongest demand online. In Q1, AB InBev Efes non-alcoholic brands have been to 6 more online retailers, and now they are available to consumers in more than 10 largest delivery services. The company also notes the increasing popularity of Russian brands abroad, in countries such as China, Belarus, and Kazakhstan, in which regard the export direction has shown more than two-fold growth.

The company continued to develop its own В2В platform “VyBEERrai”. As of Q1 2021 the number of partners authorized on the platform reached more than 27,000.

In the on-trade channel, AB InBev Efes consolidated its position and entered into a partnership with dozens of new pubs, restaurants, and cafes in 7 regions of the country. For example, the list of AB InBev Efes partners now includes the “BlaBlaBar” bar space at the Depo.Lesnaya food mall and the “League of Dads” legendary sports space in Moscow, and St. Petersburg-based chain of Belgian pubs “Manneken Pis”. Also, in line with the sustainability goals, the company introduced for its on-trade partners the Stella Artois sunshades made from completely recycled materials meeting modern environmental standards.

Being socially responsible company, AB InBev Efes specifically focuses on environmental issues. In 2018, the company announced the 2025 global sustainability goals, among which: output of 100% of the product in packaging that is returnable or made from majority recycled content, transition to renewable sources of energy, reduction in CO2 emissions, and providing the communities in high-stress areas with measurably improved water availability and quality. To achieve these goals, AB InBev Efes breweries in Russia are constantly working to optimize and modernize production, reduce water and electricity consumption, minimize air emissions, and launch other projects and initiatives.

For example, one of the company's energy-saving initiatives was a pilot project to introduce fractional boiling technology, which reached its final test stage in Q1 2021. The project launched at the Novosibirsk brewery saves from 1 to 5 MJ of energy per hectoliter of beer. In addition, on March 27, AB InBev Efes for the sixth time took part in the largest environmental action “Earth Hour”. As part of the action, all the company's breweries in 11 regions of the country refused to use electricity for one hour, which saved more than 4,600 kW.