Carlsberg boosts Russia shipments 1% in 2016
MOSCOW. Feb 8 (Interfax) - Danish brewing concern Carlsberg boosted shipments to Russia 1% in 2016 due to the low comparison basis, warm weather in the third quarter and market share gains in the second half of the year, Carlsberg Group's Baltika Breweries, said in a press release on the financial results for 2016.
The Russian beer market declined by an estimated 1%-2% for the full year and an estimated 4% in Q4, Baltika said.
"Although some macro indicators have started to show improvement in 2016, the market remains impacted by the ongoing macroeconomic challenges in the country. Apart from that, regulatory initiatives, such as introduction of EGAIS, had an impact on the situation. The reason for negative market dynamics in Q4 were bad weather conditions and further decline in the consumer real disposable income," it said.
Baltika's overall volume market share declined by 0.3 percentage points to 34.5%, although a number of the group's brands recorded market share gains: Carlsberg (up 1.8 pps), Zhigulevskoye (1.3), Seth & Riley's Garage (0.2) and Baltika 9, Neon Beer, Baltika 0 and Flash Up (0.1 each).
Market share in the modern trade channel rose by 1.6 pps last year.
"Over 2016, Baltika has grown its commercial power and prepared its business to new conditions, in which we are to work in 2017 due to legislation changes," Jacek Pastuszka,
president of Baltika Breweries and executive vice president of Carlsberg Group Eastern Europe Region, is quoted in the press release as saying.
In 2017, the company will focus on the realization of its tactical plan within Carlsberg Group's SAIL'22 strategy, where Russia holds a special place. "But as before we believe that the fundamental premise for sustainable development of business and regions where the company operates is open and constructive dialogue with the government, fair and predictable regulation and tax environment," Pastuzska said.
