Azerbaijan: Carlsberg Azerbaijan pays more taxes despite sales volume drop in 2021

Despite a decrease in the volume of sales by 2.7% in 2021 versus 2020 due to the market volatility during the COVID-19 pandemic, Carlsberg Azerbaijan's tax payments increased by 9%, amounting to 38.8 million AZN, The Trend reported on February 11..

Growth in sales volumes in the modern trade channel (large chain stores) was 6.7%, while on-trade (cafes, restaurants) and DIOT (draught beer in stores) channels reached a record 20.5% over the past three years, which was thanks to the recovery of draft beer sales after the lifting of pandemic-related restrictions. On the other hand, the return of consumers to cafes and restaurants led to a 9.8% decrease in sales through the traditional trade channel (small stores).

Key brands of the company have demonstrated the sales volumes growth in 2021. The flagship brand Xırdalan showed a strong growth (+3%), primarily due to the redesign in 2020, as well as improved coverage in the HoReCa channel (hotels, restaurants, cafes). Kuler, a brand for consumers who are looking for unconditional novelty in classic beer, demonstrated amazing results (+16%), thanks to the launch of new flavor Kuler Sweet Lime, as well as activities on the beaches of Absheron and advertising campaign.

The focus on the development of alcohol-free line of Baltika brand with new flavors Baltika 0 Raspberry, Baltika 0 Lime and Baltika 0 Grapefruit, launched in 2020, allowed this category to grow by 31% in the company portfolio. Premium brands from the Carlsberg Group's global portfolio - the legendary Danish lager Carlsberg and one of the leading French brands - Kronenbourg 1664 Blanc, distributed in the major cities of the country, increased sales by 57% and 49%, respectively. However, some of the company's brands showed a negative trend compared to 2020: Efsane - 16%, Tuborg - 19%.

In order to reduce import dependence, the company pays great attention to the localization of raw materials and supplies used in the brewing industry. In September 2021, Carlsberg Azerbaijan brewed the first Xırdalan beer using Azerbaijani barley. The barley localization project was launched in 2019 jointly with the AzərŞəkər company, and in 2022-2023 it is planned to completely switch the production to local barley. In 2021 the company began using locally produced labels and is currently negotiating with local producers of bottles and PET packaging.

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