Celebrating success in Russian market

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Celebrating success in Russian market
Oluşturulma Tarihi: Haziran 15, 2009 00:00

MOSCOW - Efes Pilsen celebrates its 10th year in the Russian market as the fourth best-selling beer brand. After a decade, Efes now ranks among the top 50 companies in Russia. The firm refused to exit the country in 1998 and now is reaping the rewards of patience.

Efes Pilsen, a Turkish beer company under Anadolu Group, has celebrated its 10th year in Russia with a $1 billion in turnover and $900 million in investments. Efes has managed to rank among the top 50 firms in the $1.3-trillion-worth Russian economy.

When Efes looked to invest in the Russian market a decade ago, it promised to grow rapidly; and it delivered, Anadolu Group Chairman Tuncay Özilhan said last week, during a ceremony to celebrate the 10th year of Efes in Russia. Anadolu Group Honorary Chairman Kamil Yazıcı and Moscow Mayor Yuri Luzkhov also attended the celebration.

Regarding the economic crisis in Russia back in 1998, he said that Efes had never given up operations in Russia. The stay in Russia created opportunities for the firm. "We started with 150 million liters and now have reached a 10 percent market share," Özilhan said.

"Amid the global crisis, while other firms halt production, we continue to produce and we have done what we promised in Russia... We are the fourth largest beer producer and among top 50 firms in Russia."

Noting that Russian business for Anadolu Group started in 1980s with the import of Lada brand automobiles, he said, "With the launch of the Efes Company in 1999, our operations reached their climax. By the end of 2008, we had invested $900 million in Russia." Efes beer sales reached 1.1 billion liters last year.

Ranking fourth

Anadolu Group has 16 brands in Russian market and ranks fourth with a market share of 10 percent, said Efes General Manager Ahmet Tuğrul Ağırbaş. "The top brand in the market has a 39 percent share, the second has 16 percent, the third has 15 percent and Efes has 10 percent." He added that the company predicted a 5 to 6 percent contraction in the market this year. "We always aim to develop our brands in Russia. For example we have introduced 10 new brands to the Russian market besides our existing brands and we have supplied employment to 3,200 people. We aim to develop and expand."

The Anadolu Group also had some hard times in the beginning of its venture, Moscow Mayor Yury Luzkhov said, thanking the firm for its "courage."

"At the beginning Efes imported 90 to 95 percent of its barley and supported Russian barley producers," Luzkhov said. "Today, Efes supplies 80 percent of its barley from the domestic market. It invested $230 million in Moscow and paid $12.6 million in tax.

"Efes is the strongest independent regional beer producer of the world, ranking fifth in Europe and 14th in the world," said Alejandro Jimenez, Efes Beer Group chairman.

Noting that Russian alcohol consumption was not likely to decline despite the crisis, Ağırbaş said, "Russian people love to celebrate everything and in every celebration alcohol is involved."
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