Efes Ukraine

Positions in the market

For June, 2014 the extensive beer economy in the territory of Ukraine is conducted by three transnational holdings whose product line includes also the Russian brands — Carlsberg (owns Baltika brewery) and also Efes and Sun InBev. At the end of 2013 Carslberg in the Ukrainian beer market took the 2nd place from shares of 27.9% — production capacities in Kiev, Lviv and Zaporizhia. According to 2012 the share of Efes made 6.9% of all market. The market share "Sun InBev Ukraine" in 2013 made 34%^[1].

In 2012 Efes Ukraine makes and also imports popular local and international brands of beer to Ukraine:

• Miller Genuine Draft,
• REDD'S,
• "Gold Barrel",
• Velkopopovicky Kozel Svetly,
• Amsterdam Mariner,
• "Sarmatian",
• "Zhigulyovsk",
• "Kind Choubin".

Assets

For June, 2014 the Sarmat company controlling including breweries in Luhansk and in Donetsk was a part of group.

History

Efes Ukraine - dynamically growing player of the Ukrainian beer market: in 2011 production volume of the company grew by 51.3% (data of industry company of Ukrpivo).

In December, 2012 it was reported that Efes Ukraine is included into Big Four of the brewing leading companies which are totally occupying more than 90% of the beer market of Ukraine.

2014: Difficulties during civil war

In the spring of 2014 the difficult situation on implementation and production develops for transnational breweries in Ukraine. According to sources of Izvestia of June, 2014 in the alcoholic market, can suspend the activity two large Ukrainian breweries in Donetsk and Luhansk entering into the brewing Sarmatian group in the nearest future (enters "Efes Ukraine"). Besides, falling of import of the Ukrainian beer to Russia — is observed including because local beer goes to domestic market more: retailers refuse purchases of the beer of the same brands poured in Russia because of boycott from the consumer.

Temporary termination of work of the plants is connected with military operations between rebels and the National Guard in these areas. It should be noted that the Luhansk brewery in 115 years of the existence stopped producing beer only twice — during Civil and the Great Patriotic War of wars. The Donetsk brewery carrying today the name "Sarmatian" was completed and started in 1962 (was under construction 10 years, there is a legend that the beer factory in 1952 for Stalin was asked by miners) and never stopped.

At the plants within two days any of the phone numbers specified on the website did not answer.

As note in the Russian divisions of the international breweries, difficulties in the Ukrainian market concern not so much production of beer how many its implementation on internal and on external the markets. In Russia significant decrease in import of beer from Ukraine is noted. Popular Ukrainian brands, such as Chernihiv, Lviv and Slavutich, are made for the Russian retail at the domestic plants.

As notes a source in the market, the Ukrainian consumers became extremely attentive to the country of origin of products and, in fact, declared boycott to goods of the Russian production. Choosier than steel and the Ukrainian retailers: if the same brand of beer is made also at the Russian enterprise, and in Ukrainian — shops require intoxicated of the last.

Notes