AB InBev Efes announced 2019 results
AB InBev Efes has summed up its results for 2019. 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.
In 2019, the brewing market managed to keep up the beer and beer-based beverage production at the 2018 level and continues to stabilize, according to Rosstat’s official statistics. Moreover, almost all beer categories showed growth: unfiltered grew about 12 %, fruit and flavored grew about 18%, non-alcoholic increased about 8% and dark grew about 2%.
“2019 has become quite difficult for us, but at the same time extremely interesting, as we have completed all our integration business processes, and for the first time we were able to test the opportunities of the new company. In 2020, we intend to do a lot of work on bugs in order to improve the results of the previous year"Dmitry Shpakov, CEO, AB InBev Efes
In 2019, the company has maintained its leading position in the Premium and Super Premium segments. The total share of the company in this segment amounts to more than 40% of the market. The strongest growth was demonstrated by the company’s lead brand, BUD (+0.49pp). Corona Extra, Stella Artois, and Spaten also showed positive dynamics. The lead in this segment was also solidified thanks to the launch of the BUD66 super-premium brand and the revolutionary new Kozel Rezany brand from Velkopopovický Kozel, the Premium segment leader. Brands of the mid- and low-price segments also achieved solid growth in market share – Lowenbrau (+0,85рр), Gold Mine Beer (+1.35pp), Khmel & Solod (+0.46pp) and Efes (+0.4pp).
In 2019, AB InBev Efes continues to implement the commitments of the 100+ global sustainability strategy. AB InBev Efes signed a cooperation agreement in the field of renewable electricity with Enel, Hevel, Fortum and Rusenergosbyt at the SPIEF. In September, the company launched the first supply of electricity from renewable sources in Omsk and Klin. Currently, more than 50% of the total consumption by production sites comes from renewables.
As part of the initiative of reducing waste and its environmental footprint, the company was initiated and implemented the BUD ReCup Arena project. The unique BUD ReCup Arena football pitch was produced from recycled beer cups collected at the 2018 FIFA World Cup™. That was the unique gift to the Volzhsky city and also allowed to enhance the FIFA World Cup legacy.
AB InBev Efes also launched a joint environmental initiative with the Bely Medved brand and Magnit retailer. Reverse vending machines were set in the Magnit stores. Consumers have collected more than 200 kilograms of waste packaging over the months of the initiative.
In July 2019, AB InBev Efes and the government of the Republic of Tatarstan signed an agreement on the development of the agro-industrial program. Eventually, procurement tripled as early as 2019.
As of 2019, AB InBev Efes has remained one of the largest taxpayers in all 11 regions of its operation. The total amount of taxes paid to the budgets of all levels amounted to more than 50 billion rubles.
Being a socially responsible company, AB InBev Efes has carried out a number of activities dedicated to promoting the idea of responsible alcohol consumption. In September 2019, the company supported the Global Beer Responsibility Day, a major international initiative. Over 3,500 employees and more than 30,000 consumers took part in the campaign in Russia.
As part of the Family Talk national project, AB InBev Efes held events in Volzhsky, Omsk, Kazan, and Ulyanovsk. These events were attended by more than 2,000 people.
Furthermore, AB InBev Efes has continued its support of “Avtotrezvost” (Sober Driving) international social project held by the Moscow Automobile and Road Construction State Technical University (MADI) and producers of alcohol beverages. In 2019, AB InBev Efes held 22 campaigns and checks together with the traffic police as part of the project.