By the end of 2019, Carlsberg Azerbaijan has maintained its leading position in the beer market of the country with a share of 63% (according to the expert assessment of Carlsberg Azerbaijan specialists). The company also retains the first place in the Azerbaijani beer market for the volume in the Traditional trade channel with a share of 87%, according to the expert assessment of Carlsberg Azerbaijan specialists.
If we analyze the dynamics of the domestic beer market by sales channels, the share of the Traditional trade channel in Azerbaijan is currently declining, while the best dynamics is shown by Modern trade – today it is the fastest growing channel in the beer market in Azerbaijan. The sales volume of the Traditional trade channel decreased by 12% compared to 2018. The main reason is related to the expansion of supermarket chains in Azerbaijan. If we analyze the dynamics of the domestic beer market by packaging formats, the format of draft beer (kegs) is growing significantly: its share has reached 39%, which is 2% more than in 2018.
As for the dynamics of the beer market in terms of packaging formats, the format of draft beer (kegs) is growing significantly in Azerbaijan: its share reached 39% in 2019, which is 2% more than in 2018. This is a logical consequence of the growth of the DIOT channel, which sells draft beer packaged in kegs.
The brewing industry is an important element of the economy, making a significant contribution to the budget of Azerbaijan. Over the past few years, Carlsberg Azerbaijan has been one of the largest taxpayers in Azerbaijan: in 2019, the company paid about 21 million manats of taxes and other mandatory payments to the state budget.
The channel's share of Traditional trading is declining, while the channel showed the best dynamics
In December 2019, Carlsberg Azerbaijan passed the ISO 45001 – 2018 certification audit “Occupational Health and Safety Management System”. Thus confirming, that Carlsberg Azerbaijan meets international requirements in the field of occupational safety and health.
Also in December 2019, the plant has confirmed its certificate according to the FSSC 22000 “Food Safety" Standard. Production processes of the Carlsberg Azerbaijan fully comply with international requirements in the field of product safety.
As part of the import substitution and cultivation of domestic malting barley project, as well as in support of the development of the agricultural sector of the Republic of Azerbaijan, Carlsberg Azerbaijan together with the company "Azərşəkər" in Shamkir district conducted a test seeding of malting barley in 2019 as part of its own agricultural project.
The harvest is scheduled for June 2020, after which it will be possible to analyze the gathered barley and draw conclusions about its suitability for brewing. If the pilot project gives positive results, it can be scaled up as early as 2021, and this will allow Carlsberg Azerbaijan to fully cover the need for malting barley at the expense of domestic production, as well as to enter regional tenders for this type of raw material in the future.
Since May 2019, new varieties of soft drinks have appeared in the portfolio of Carlsberg Azerbaijan brands, as well as on store shelves: Kvas Taras White and Kvas Taras Black, a sub–brand of the Baltika - Baltika 0 Grapefruit. A new taste of non-filtered beer of the Khirdalan brand – Khirdalan Non-filtered - was also presented to consumers. Since December 2019, new tastes of the Afsana brand have become available to consumers in Azerbaijan - Afsana Strong 7.2% and Afsana Super Strong 10% Can with an updated design.
Sustainable development projects
As part of an international company and a responsible domestic manufacturer, Carlsberg Azerbaijan traditionally pays great attention to projects in the field of sustainable development.
As part of the Carlsberg Group sustainable development program “4 ZEROS: Together For Future”, which is a response to the global challenges of today and includes four strategic goals for all Carlsberg Group enterprises: ZERO carbon footprint, ZERO water loss, ZERO irresponsible consumption and ZERO accidents, the Carlsberg Azerbaijan has demonstrated significant progress over the past years. In general, over the past 5 years, starting from 2015, the company has managed to reduce the specific consumption of water in the production by 32%, heat by 19.5% and electricity by 9%.
In March 2019, Carlsberg Azerbaijan, together with the environmental organization "Green Baku", organized the planting of olive trees on the territory of the Baku Engineering University. The event was attended by the University students, employees of Carlsberg Azerbaijan and members of the environmental organization "Green Baku". More than 200 trees were planted during the campaign.
In June 2019, Carlsberg Azerbaijan signed a Memorandum of Understanding (MoU) with the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan. The MoU implies three-year cooperation in the field of environmental protection with a focus on cooperation in the field of waste management. The memorandum was signed at an event dedicated to the 50th anniversary of the Carlsberg Azerbaijan Brewery.
Overall results of the Carlsberg Group
In 2019, Carlsberg Group continued its positive development trajectory and achieved strong financial results with a steady 3.2% revenue growth and 10.5% organic operating profit growth. The overall sales volume also grew organically by 0.1%.
Commenting on the 2019 results, Carlsberg Group President Cees't Hart said: "We are happy with the 2019 results. We saw healthy growth in total sales, a good improvement in profitability indicators, and good cash flow. In recent years, we have significantly strengthened our business position, and we will continue to follow the priorities of the Sail’22 strategy in order to support the long-term growth of our business.”
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The Carlsberg Azerbaijan Brewery is located in the city of Khirdalan, 10 kilometers from the capital of Azerbaijan. The production capacity of the plant is 8 million decaliters per year, the company employs about 250 people and approximately 400 indirectly (distributors, agencies, contractors). Total amount of the company's investment in the development of the plant is about 50 million AZN. The company's portfolio includes such popular brands as Xirdalan (Xirdalan Classic, Xirdalan Non-filtered), Tuborg, Baltika (Baltika 7, Baltika 9, Baltika 0 Wheat, Baltika 0 Grapefruit), Cooler, Afsana (Afsana Strong 7.2% and Afsana Super Strong 10%), Zhigulevskoe Branded, Carlsberg, Kronenbourg Blanc, Seth&Riley's Garage, Kvass Taras White and Kvass Taras Black.
Carlsberg Group was founded in 1847 and is currently one of the world's largest beer producers. The company's headquarters are located in Copenhagen, the capital of Denmark. Carlsberg Group has factories in dozens of countries in three major regions of the world-Western Europe, Eastern Europe and Asia. The company's portfolio includes more than 140 beer brands. Total number of employees of the Carlsberg Group is more than 40,000 people.
Head of Corporate Affairs