Alcoholic
Alcoholic Drinks

Alcoholic Drinks in Azerbaijan

Azerbaijan

Euromonitor International's Alcoholic Drinks in Azerbaijan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 121  |  Publication date: Jan 2009
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Product coverage

Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine

Executive summary

Volume sales see substantial increase due to brand expansion

Compared to the previous year, volume sales of alcoholic drinks in Azerbaijan increased significantly during 2008. Premium-priced drinks were launched in various bottle sizes. The principal domestic beer manufacturer, Baku-Castel OJSC, further increased volume share by launching its main brands in can form. Locally produced wine is available in a wide variety, whereas Georgian wine encountered a strong competitor in the form of Moldovan wine at relatively lower prices. Spirits witnessed a substantial boom in volume sales due to strong growth in the consumption of vodka and brandy. This reflects the extensive local production of brandy in various bottle sizes and attractive designs as well as the high level of saturation within vodka given the wide inflow of products from Russia, Ukraine and Belarus in addition to the huge number of local brands. However, alongside the substantial inflow of high-quality brands of Russian vodka, counterfeit varieties also manufactured in Russia and sold in Azerbaijan at lower prices have created a problem for local companies unable to compete with such cheaper alternatives.

Beer, brandy, wine and vodka are the main categories

Brandy and especially vodka experienced substantial volume growth rates in 2008 compared to the previous year. This was the result of a successful government quality control policy for vodka products which raised consumer confidence in the quality of the vodka brands available within Azerbaijan. Although wine also remained popular, volume sales witnessed slower growth due to the increasing popularity of other premium-priced spirits such as tequila, English gin and locally produced brandy. Sales of beer encountered packaging innovations by the leading domestic beer manufacturer, Baku-Castel OJSC, which launched its Khirdalan and 33 Export brands in cans.

Competitive environment includes both local and multinational companies

The competition within brandy, wine, vodka and beer intensified during 2008. Local manufacturers compete with each other most strongly for sales of brandy, wine and vodka. The latter has become extremely competitive due to the influx of Russian, Ukrainian and Belarusian brands. Turkish spirit (raki) enlarged its presence through the launch of various brands in different bottle sizes. Wine witnessed the launch of Moldovan brand Firebird, a competitor for both local and Georgian varieties. Although imported wine from elsewhere in Europe is of very high quality, price is the determining factor in the purchasing decision. Although beer production is largely concentrated in the hands of giant domestic companies, there exists fierce competition from Russian, German and Turkish brands. The competitive environment within other spirits underwent little or no change in 2008, however those manufacturers which introduced various bottle sizes increased their volume shares.

Food/drink/tobacco specialists edges ahead

Towards the end of the review period, the volume share accounted for by food/drink/tobacco specialists increased, albeit from a small base. At the same time the tendency to purchase alcoholic drinks from market stalls and street vendors substantially diminished. Supermarkets/hypermarkets is the leading distribution channel for sales of wine thanks to the wide variety available in these outlets, however overall within alcoholic drinks small grocery retailers are still in the lead.

Volume sales to increase at a CAGR of 8% over the forecast period

Volume sales of alcoholic drinks in Azerbaijan will continue to see a promising outlook between 2008-2013. Brandy and still light grape wine are expected to register the highest volume growth rates, however sales of vodka are expected to benefit from the fact that in 2007-2008 the Government licensed 34 enterprises for vodka production, albeit with validity reduced from five years to three for reasons of quality control. Other types of alcoholic drinks are unlikely to see substantial changes in either trends or preferences over the forecast period, however those brands that are also launched in smaller bottle sizes are expected to maintain their volume shares.

Table of contents

ALCOHOLIC DRINKS IN AZERBAIJAN : MARKET INSIGHT

EXECUTIVE SUMMARY

Volume sales see substantial increase due to brand expansion

Beer, brandy, wine and vodka are the main categories

Competitive environment includes both local and multinational companies

Food/drink/tobacco specialists edges ahead

Volume sales to increase at a CAGR of 8% over the forecast period

MARKET BACKGROUND

Legislation

Taxation and Duty Levies

Table 1 Excise Tax Levied on Goods Imported into Azerbaijan

Table 2 Excise Rates Imposed on Food Alcohol, Beer and Other Alcoholic Beverages Produced Within the Territory of the Azerbaijan Republic

Table 3 Taxation and Duty Levies on Alcoholic Drinks 2008

Table 4 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008

Table 5 Selling Margin of a Typical Beer Brand 2008

Table 6 Selling Margin of a Typical Wine Brand 2008

Table 7 Selling Margin of a Typical Spirits Brand 2008

OPERATING ENVIRONMENT

Contraband/Parallel trade

Duty free

Cross-border/Private imports

MARKET INDICATORS

Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008

MARKET DATA

Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008

Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008

Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008

Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008

Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008

Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008

Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008

Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008

Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007

Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008

Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008

Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013

Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013

Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013

Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013

DEFINITIONS

Summary 1 Summary - Research Sources

LOCAL COMPANY PROFILES - AZERBAIJAN

ALKO LTD - ALCOHOLIC DRINKS - AZERBAIJAN

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Summary - Alko Ltd: Key Facts

Summary 3 Summary - Alko Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 4 Summary - Alko Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 5 Summary - Alko Ltd: Competitive Position 2007

BAKI SHERAB ZAVODU - ALCOHOLIC DRINKS - AZERBAIJAN

STRATEGIC DIRECTION

KEY FACTS

Summary 6 Summary - Baki Sherab Zavodu: Key Facts

Summary 7 Summary - Baki Sherab Zavodu: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 8 Summary - Baki Sherab Zavodu: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 9 Summary - Baki Sherab Zavodu: Competitive Position 2007

BAKU-CASTEL OJSC - ALCOHOLIC DRINKS - AZERBAIJAN

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Summary - Baku-Castel OJSC: Key Facts

Summary 11 Summary - Baku-Castel OJSC: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 12 Summary - Baku-Castel OJSC: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 13 Summary - Baku-Castel OJSC: Competitive Position 2007

GANJA SHARAB-2 - ALCOHOLIC DRINKS - AZERBAIJAN

STRATEGIC DIRECTION

KEY FACTS

Summary 14 Summary - Ganja Sharab-2: Key Facts

Summary 15 Summary - Ganja Sharab-2: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 16 Summary - Ganja Sharab-2: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 17 Summary - Ganja Sharab-2: Competitive Position 2007

NAIG'S CO TOVUZ BALTIYA LTD - ALCOHOLIC DRINKS - AZERBAIJAN

STRATEGIC DIRECTION

KEY FACTS

Summary 18 Summary - Naig’s Co Tovuz Baltiya Ltd: Key Facts

Summary 19 Summary - Naig’s Co Tovuz Baltiya Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 20 Summary - Naig’s Co Tovuz Baltiya Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 21 Summary - Naig’s Co Tovuz Baltiya Ltd: Competitive Position 2007

BEER IN AZERBAIJAN

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Lager price band methodology

Summary 22 Summary - Lager by Price Band 2008

Published data comparisons

SECTOR DATA

Table 24 Sales of Beer by Subsector: Total Volume 2003-2008

Table 25 Sales of Beer by Subsector: Total Value 2003-2008

Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008

Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008

Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008

Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008

Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007

Table 33 Beer Imports by Country of Origin: Total Volume 2002-2007

Table 34 Beer Imports by Country of Origin: Total Value 2002-2007

Table 35 Company Shares of Beer by National Brand Owner 2003-2007

Table 36 Company Shares of Beer by Global Brand Owner 2003-2007

Table 37 Brand Shares of Beer 2004-2007

Table 38 Forecast Sales of Beer by Subsector: Total Volume 2008-2013

Table 39 Forecast Sales of Beer by Subsector: Total Value 2008-2013

Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013

Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013

RTDS/HIGH-STRENGTH PREMIXES IN AZERBAIJAN

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Published data comparisons

SECTOR DATA

Table 42 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008

Table 43 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008

Table 44 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008

Table 45 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008

Table 46 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008

Table 47 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008

Table 48 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008

Table 49 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008

Table 50 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2002-2007

Table 51 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007

Table 52 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007

Table 53 Brand Shares of RTDS/High-strength Premixes 2004-2007

Table 54 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013

Table 55 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013

Table 56 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013

Table 57 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013

WINE IN AZERBAIJAN

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Published data comparisons

Table 58 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008

Table 59 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 60 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 61 Wine Production, Imports and Exports: Total Volume 2002-2007

Table 62 Wine Exports by Country of Destination: Total Volume 2002-2007

Table 63 Wine Exports by Country of Destination: Total Value 2002-2007

Table 64 Wine Imports by Country of Origin: Total Volume 2002-2007

Table 65 Wine Imports by Country of Origin: Total Value 2002-2007

Table 66 Forecast Sales of Wine by Subsector: Total Volume 2008-2013

Table 67 Forecast Sales of Wine by Subsector: Total Value 2008-2013

Table 68 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013

Table 69 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013

Table 70 Leading Wine Players 2008

Table 71 Sales of Wine by Subsector: Total Volume 2003-2008

Table 72 Sales of Wine by Subsector: Total Value 2003-2008

Table 73 Sales of Wine by Subsector: % Total Volume Growth 2003-2008

Table 74 Sales of Wine by Subsector: % Total Value Growth 2003-2008

Table 75 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008

SECTOR DATA

SPIRITS IN AZERBAIJAN

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Published data comparisons

SECTOR DATA

Table 76 Sales of Spirits by Subsector: Total Volume 2003-2008

Table 77 Sales of Spirits by Subsector: Total Value 2003-2008

Table 78 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008

Table 79 Sales of Spirits by Subsector: % Total Value Growth 2003-2008

Table 80 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008

Table 81 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008

Table 82 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 83 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 84 Spirits Production, Imports and Exports: Total Volume 2002-2007

Table 85 Spirits Exports by Country of Destination: Total Volume 2002-2007

Table 86 Spirits Exports by Country of Destination: Total Value 2002-2007

Table 87 Spirits Imports by Country of Origin: Total Volume 2002-2007

Table 88 Spirits Imports by Country of Origin: Total Value 2002-2007

Table 89 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007

Table 90 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007

Table 91 Vodka Production, Imports and Exports: Total Volume 2002-2007

Table 92 Liqueurs Production: Total Volume 2002-2007

Table 93 Company Shares of Spirits by National Brand Owner 2003-2007

Table 94 Company Shares of Spirits by Global Brand Owner 2003-2007

Table 95 Brand Shares of Spirits 2004-2007

Table 96 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013

Table 97 Forecast Sales of Spirits by Subsector: Total Value 2008-2013

Table 98 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013

Table 99 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013

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