BUSINESS UPDATE RUSSIA & UKRAINE Q1 2003 May 2003.

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BUSINESS UPDATE RUSSIA & UKRAINE BUSINESS UPDATE RUSSIA & UKRAINE Q1 2003 Q1 2003 May 2003 May 2003

Transcript of BUSINESS UPDATE RUSSIA & UKRAINE Q1 2003 May 2003.

Page 1: BUSINESS UPDATE RUSSIA & UKRAINE Q1 2003 May 2003.

BUSINESS UPDATE RUSSIA & UKRAINEBUSINESS UPDATE RUSSIA & UKRAINEQ1 2003Q1 2003

May 2003May 2003

Page 2: BUSINESS UPDATE RUSSIA & UKRAINE Q1 2003 May 2003.

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BEVERAGE MARKET BY DRINK CATEGORY - RUSSIA BEVERAGE MARKET BY DRINK CATEGORY - RUSSIA

Source: Canadean: Annual Report 2002 Russia

*Liquid milk consumption, of which approximately half is used in cooking

0

50

100

150

200

250

300

350

400

97 98 99 00 01 02

Spirits

Wine

Tea

Milk*

SoftDrinksBeer

Coffee

Total 253 257 254 274 320 359Million hl

Share of beer 10.9% 12.9% 17.8% 19.0% 19.1% 18.7%%

Beer volume 27.6 33.1 45.3 52.3 61.0 67.0Million hl

Total volume, Million hl

CAGR1997-2002

%Spirits 10.5%Wine 3.8%

Tea -0.8%Milk* 13.0%

Soft Drinks 7.7%Beer 19.4%

Coffee 2.3%

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0

50

100

150

200

250

300

97 98 99 00 01 02

Spirits

Wine

Tea

Milk*

SoftDrinks

Beer

Coffee

BEVERAGE MARKET BY DRINK CATEGORY - RUSSIA BEVERAGE MARKET BY DRINK CATEGORY - RUSSIA

Source: Canadean: Annual Report 2002 Russia

Consumption of Beverages per capita; Liter

Alcoholic intake per capita; Liter

CAGR1997-2002

%Spirits 10.08%Wine 4.10%

Tea -0.61%Milk* 13.15%

Soft Drinks 7.54%Beer 21.36%

Coffee 2.37%

CAGR1997-2002

%Spirits 10.08%Wine 4.10%Beer 21.36%

0

10

20

30

40

50

60

70

97 98 99 00 01 02

Spirits

Wine

Beer

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MARKET GROWTH - RUSSIA MARKET GROWTH - RUSSIA

2002 2003Source: SIL estimation, State Statistics Office

20.0%

28.0%

20.0%

13.0%13.8%14.7%12.4%

3.8%

-5.6%-4.6%

7.0%

1.9%

-5.0%

-7.9%

-2.3%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

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MARKET VOLUME BY PACK - RUSSIA MARKET VOLUME BY PACK - RUSSIA

Source: SIL estimation, State Statistics Office

6.1% 6.1% 6.2% 6.2% 6.3% 6.3% 5.2% 4.8% 4.8%

62.0% 57.9% 56.5% 55.5% 55.5% 55.1% 53.5% 53.7% 51.9%

26.2%28.5% 28.4% 28.5% 28.5% 28.3% 30.3% 30.6% 32.3%

5.8% 7.5% 9.0% 9.7% 9.7% 10.3% 10.7% 10.9% 11.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-02 Jan-03 Feb-03 Mar-03

Can

PET

Bottle

Keg

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STELLA ARTOIS STELLA ARTOIS

Samara, “Zvezda”, April 7th 03

Stella Artois Cinevisibility consumer program in major Moscow and 7 regional

cities movie theatres

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

January February March

2002 2003

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STAROPRAMEN STAROPRAMEN

Launched on 13.03.03 in 50 cl & 33 cl bottles

The first trade feedback is very positive

April sales in line with the forecast

OOH campaign in Moscow (April)

National TV campaign is on air

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SIBIRSKAYA KORONA SIBIRSKAYA KORONA

Achievements

Launch of Proprietary bottle with new label

design in March

Positive feedback from consumers

Launch supported with national TV, OOH in

largest cities of Russia

Launch of Sibirskaya Korona in PIVOPACK®:

SK Vesenneye (Spring) seasonal variety –

launched in March

Launch of new varieties:

SK Krepkoye (Strong) Lux in Proprietary

bottles and cans – launched in February

SK Rubinovoye in Proprietary bottles –

launched in mid April. Support by OOH in

East Regions.

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KLINSKOYE KLINSKOYE

Achievements:

Redkoe Launch

Proprietary bottle

PIVOPACK® Launch

Label Change

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KLINSKOYE REDKOE LAUNCH KLINSKOYE REDKOE LAUNCH

TV Commercial – January 2003

Redkoe has been the first innovative product for the brand and now it is a

significant brand variety sold at a premium price.

Redkoe TVC – 1st place in Independent Voting (March 2003)

Consumers find liquid very unique and tasty!

Dec-02 Jan-03 Feb-03 Mar-03

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TOLSTIAK TOLSTIAK

City format Design

1 L PET successfully launched -

over 10% YTD in the brand’s mix.

Tolstiak PR program (Quality Image

Support) in progress:

Distributors’ program

Retailers’ program

Tolstiak Quality Campaign:

Factory Tour TVC – on air from April 14

Tolstiak regional support:

POSM program, new POSM designs

developed

Consumer promotion in Urals

Local PR

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BEVERAGE MARKET BY DRINK CATEGORY - UKRAINE BEVERAGE MARKET BY DRINK CATEGORY - UKRAINE

Source: Ukrpivo & Derzhcomstat

0

5

10

15

20

25

30

35

40

97 98 99 00 01 02

Champagne

Wine

Strong alcoholicdrinks

Alcopops

Juices

CSD

Mineral water

Beer

Total volume, Million hl

Total 17.0 19.1 23.6 27.4 33.0 35.9Million hl

Share of beer 33% 33% 34% 36% 35% 38%%

Beer volume 5.6 6.3 8.0 9.7 11.5 13.5Million hl

CAGR1997-2002

%

Champagne -9.5%Wine 5.6%

Strong alcoholic drinks -5.9%Juices 21.8%

CSD 14.6%Mineral water 33.1%

Beer 19.0%

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BEVERAGE MARKET BY DRINK CATEGORY - UKRAINE BEVERAGE MARKET BY DRINK CATEGORY - UKRAINE

Consumption of Beverages per capita; Liter

Alcoholic intake per capita; Liter

Source: Ukrpivo & Derzhcomstat

0

10

20

30

40

50

60

70

80

97 98 99 00 01 02

Champagne

Wine

Strong alcoholicdrinksAlcopops

Juices

CSD

Mineral water

Beer

0

5

10

15

20

25

30

35

40

97 98 99 00 01 02

Champagne

Wine

StrongalcoholicdrinksAlcopops

Beer

CAGR1997-2002

%Champagne -8.7%

Wine 6.5%Strong alcoholic drinks -5.1%

Juices 22.9%CSD 15.6%

Mineral water 34.2%Beer 20.0%

CAGR1997-2002

%Champagne -8.7%

Wine 6.5%Strong alcoholic drinks -5.1%

Beer 20.0%

Consumption of beer per capita, Liter/year 11.2 12.6 16.1 19.8 23.6 27.8

Total alcoholic intake per capita, LiterYear 19.8 21.2 25.1 30.1 34.0 37.3

Beer share of alcoholic intake 57% 60% 64% 66% 70% 75%

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MARKET GROWTH - UKRAINE MARKET GROWTH - UKRAINE

4.2%

35.4%

14.4%

24.2%

41.0%

14.5%

0.7%

7.7%

24.1%

18.7%

-5.9%

6.6%

26.6%

7.2%

17.6%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Source: Ukrpivo & Derzhcomstat

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MARKET VOLUME BY PACK - UKRAINE MARKET VOLUME BY PACK - UKRAINE

61.2% 61.1% 61.1% 65.5%58.5% 58.6% 59.9%

23.3% 20.3% 17.9%20.0% 28.2% 27.6% 26.8%

12.2% 15.6% 19.2% 11.4% 12.0% 12.5% 11.9%

1.3%1.2%1.2%2.9%1.4%2.6%2.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 2002 Q2 2002 Q3 2002 Q4 2002 Jan-03 Feb-03 Mar-03

OtherCanKegPETBottle

Source: Ukrpivo & Derzhcomstat

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Q1 2003 BRAND INITIATIVES - UKRAINE Q1 2003 BRAND INITIATIVES - UKRAINE

Main product initiatives:

Launch of Chernigivske Bile (wheat) 1L PET in March

Launch of Chernigivske Mitsne (strong) in 2L PET

Rogan Svitle (light) launch in bottle & keg (to fill niche in value segment)

Key brands performance:

Stella Artois: + 116%

Chernigivske: + 51%

[including Bile (wheat variant)]