Estonia: Saku ends Q1 with exceptional sales

Saku Õlletehase AS ended the first quarter with beverage sales of 21 million litres, a notable 33% upswing on the same period in 2006, according to company’s press release, April 19. The main growth drivers were the water and cider and long drink categories. Beer sales grew more modestly.

“I am extremely pleased to state that Saku’s sales growth for the first quarter was the largest in the market,” said chairman of the brewery’s management board Ireneusz Smaga. Commenting on the company’s strong results Smaga said that in addition to the successful sales of established products, in Q1 Saku launched 8 product innovations most of which were very warmly received. “Sales of special beer Saku Abbey which was launched in January surpassed our expectations many fold. The exclusive can of Saku Kuld which we launched at the beginning of the year also became an instant success – sales exceeded the forecast two times. Other successful products include our classical cocktail line SIN which was supplemented at the beginning of the year with two new flavours, pomegranate flavoured DLight and KISS Spritzer Rosé,” observed Smaga. “Distribution of the well-known products of the Finnish beverage producer Sinebrychoff has also contributed to our exceptional results,” he added.

Commenting on the results of Q2 Samaga said that the biggest hit will probably be the small Saku Originaal which was launched last week with the company’s new corporate logo. The whistling pull-0ff cork of the product has already caused a lot of excitement among consumers.

Saku Õlletehas has renewed its corporate logo, aligning it with the new business strategy which foresees shifting the focus from the beer market to the beverage market. Saku’s vision is to attain and hold the leading position in any beverage category where it decides to compete with its own brands.

The slogan ‘Refreshing experience’ entails Saku’s mission to provide the consumers with refreshment and new experiences. The year 1820 is the date when the brewery was first mentioned and golden sheaves and hop bines refer to Saku’s extensive brewing expertise and experience.

“Our surrounding environment is in constant transformation, which finds reflection also in the brewery’s operation and development. The beer market which Saku has been cultivating for years has become a classical beverage category. The new trend setters are innovative beer drinks, alcohol cocktails, ciders and flavoured waters which have little if any connection to beer,” said Chairman of the Board of Saku Õlletehase AS Ireneusz Smaga, adding that although originally a brewery, Saku has always taken the lead in launching and promoting new attractive beverage categories which is why the wooden beer mug in the company’s logo no longer represented its current position and aspirations.

Saku expects to complete the logo change process by the end of this summer. For a while, some products will be bearing the old logo but gradually it will be replaced by the new one. The new logo was developed together with ad agency Division.

Founded in 1820 Saku Õlletehas is the oldest Estonian brewery which has been operating without interruption. Today Saku produces and distributes over 10 different beer brands, the best-known including Saku Kuld, Saku Originaal, Rock, Saku On Ice, Saku DLight, Saku Abbey, Carlsberg, Saku Hele and Saku Tume. In addition, Saku Õlletehas produces the KISS cider, long drinks SIN and ZIP, table water Vichy Classique, flavoured water Vichy VivaFresh and iced tea Vichy Ice Tea. Saku Õlletehase AS is also the Estonian distributor of the products of the well-known Finnish beverage producer Sinebrychoff.

Saku Õlletehase AS will release Q1 financial results on Tallinn Stock Exchange on 30 May 2007.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .