Turkey: Anadolu Efes announced a 17% rise in y/y beer sales volume

Anadolu Efes beer sales volume in the twelve month period ended on 31.12.2006 was up 17% over previous year and constituted 18.8 million hectoliters, according to company’s press release, February 14.

Turkey beer

• In spite of the severe winter and exceptionally short summer period in 2006, together with the lower than expected overall tourism activity, which had a negative effect on the total consumption in the Turkish beer market, the domestic sales volume of our Turkey beer operations was in line with previous year at 6.6 mhl, assisted by the sales volume growth in the fourth quarter of 2006.

• The estimated contraction of the beer market in Turkey due to above mentioned factors, and the over performance, resulted in a market share gain in 2006, up at 82% vs. 80% in 2005.

• Including the export volume, which was also maintained at 0.5 mhl in 2006, the total sales volume of beer operations in Turkey was realized at 7.1 mhl.

• In order to further satisfy the consumers’ preferences Anadolu Efes has included “Efes Ice” and “Marmara Kırrmızı” in its product portfolio in 2006.

International beer (EFES BREWERIES INTERNATIONAL N.V.)

• Anadolu Efes’ international beer operations are conducted by Efes Breweries International N.V. (“EBI”), incorporated in the Netherlands and listed on the London Stock Exchange. EBI is a 70% subsidiary of Anadolu Efes and currently manages its brewing operations through 10 breweries and 4 malteries in 4 countries.

• In 2006 EBI’s total sales volume increased to 11.7 mhl, delivering 31% growth compared to previous year.

• Excluding the sales volume of the brands of the Krasny Vostok Group (“KV Group”), which EBI acquired in February 2006 in Russia, the organic sales volume growth of EBI in 2006 was realized at 8%.

• In addition to KV Group brands, excluding the sales volume of Interbrew Efes Romania (“Efes Romania”), which EBI disposed of its 50% share to its JV partner InBev S.A. in August 2006, the sales volume growth of EBI in 2006 was 10%.

International beer (CONT’D)

• In Russia, sales volume was up by 44% in 2006 over previous year, by reaching 8.7 mhl. Excluding the sales volume of KV Group brands, total sales volume increase in Russia was 10%.

• Moscow Efes Brewery (“MEB”), EBI’s operating subsidiary in Russia signed a license agreement with Bavaria N.V., the second largest brewer in Holland, for production, sale and distribution of “Bavaria Premium” and “Bavaria Malt” in Russia, effective from April 2006. MEB further expanded its premium product portfolio through signing an agreement with Femsa Cerveza for production of Mexican beer “SOL” in Russia in December 2006.

• In Kazakhstan, total sales volume grew by 17%, by reaching 0.9 mhl, whereas in Moldova, where EBI has a built-in smaller scale soft drinks business in addition to its brewing operations, total sales volume increased by 12% in 2006 reaching 1.2 mhl. On the other hand, only beer sales volume in Moldova was up by 17%.

• In Serbia, where EBI was the fourth largest brewer in 2006, sales volume was down 10% to 0.5 mhl. In order to effectively capitalize on the future potential of the Serbian beer market, EBI currently focuses on the continuous development of branding and infrastructure of its operations in Serbia.

About Anadolu Efes

Anadolu Efes Biracılık ve Malt Sanayii A.Ş. (Anadolu Efes), together with its subsidiaries and affiliates produces and markets beer, malt and soft drinks across a geography including Turkey, Russia, the CIS countries, Southeast Europe and the Middle East. Anadolu Efes, listed in the Istanbul Stock Exchange is an operational entity under which the Turkey beer operations are managed, as well as a holding entity which is the majority shareholder of Efes Breweries International N.V. (“EBI”) that manages international beer operations and the largest shareholder of Coca Cola İçecek A.Ş. (“CCI”) that manages the soft drink business in Turkey and international markets. The Group currently operates in 10 countries with 15 breweries, 6 masteries and 12 Coca-Cola bottling facilities and has an annual brewing capacity of around 32 million hectoliters, malting capacity of 236,500 tons and Coca-Cola bottling capacity of 573 million unit cases per year.

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 .