Introduction - Anadolu Efes

Introduction
Eat the food, Enkidu,
it is the way one lives.
Drink the beer, as is the
custom of the land (…)
Epic of Gilgamesh
Anadolu Efes; Anadolu Efes, a beer producer
and a non-alcoholic beverage producer-bottler,
with operations in a wide geography that covers
Turkey, Russia, CIS countries, Europe, Central
Asia and Middle East, is continuing its journey to
become a global company.
Anadolu Efes started its production and sales
operations in Turkey in 1969 with two beer
factories that had a total capacity of 300,000
Hectolitres and became the market leader in the
80’s. In the same decade, the company focused on
export business to grow in the international markets.
In the nineties, Anadolu Efes decided to invest
outside of Turkey with a distinctive strategic
approach.
Today, in terms of litres of beers sold, Anadolu
Efes’ foreign market sales account for three
quarters of its total turnover, which makes it the
fifth biggest beer manufacturer in Europe and
eleventh in the world.
We Produce The
Beer Of The World
Growth through “sustainability”
for a better world
Anadolu Efes aims to be “the most
admired beer company” in all markets
it operates in. Committed to strong
work ethics and long-term sustainability
principles, the company is focused
on growth and, at the same time,
emphasizes that its products are
consumed responsibly. Protection and
development of natural and agricultural
resources are also on the top of Anadolu
Efes’ sustainability agenda: Anadolu
Efes is committed to reducing its water
consumption by 35% and carbon emission
by 25% by the end of 2015 (versus 2008).
With this perspective, Anadolu
Efes started its agricultural
R&D efforts more than 25 years
ago.
Since then it has developed and
registered 7 new varieties of
hops and 15 new varieties of malt
barley that require less water
to grow and process. These
efforts were recognized by the
Turkish Ministry of Development.
Anadolu Efes was selected
to represent Turkey in the field
of “sustainable agricultural
practices” at the Rio+20 United
Nations Sustainable Development
Conference held in Brazil in 2012.
This success story started with 2
breweries in Turkey.
In the first phase, İzzet Özilhan
and Kamil Yazıcı’s plants’ brewing
capacity was 300.000 hectolitres.
With the know-how and technology
from Czechoslovakia, they named
their beer “Efes Pilsen”, which over
the years, started to mean more
than just a brand but also “the joy
of life” for many consumers.
Anadolu Efes has
entrepreneurship in its DNA.
Developed to please the Turkish
consumers’ palate over 40 years
ago, Efes Pilsen is the first name
that comes to mind when the beer
is mentioned in Turkey.
Preserving its quality and taste since
the first day of establishment,
Efes Pilsen as a beer brand
performed astoundingly in different
aspects, and became of the rare
global brands of Turkey. One of the
most important achievements of the
company -during the establishment
phase, is the impressive development
of marketing and sales networks.
Despite economic and social turmoil
of the era, the company succeed to
grow steadily and formed as leader.
In the 80’s Efes Pilsen was the ‘beer
brand of Turkey’, undoubtedly.
The company performing impressively,
because of the new investments,
effective marketing strategies and
successful sales team.
The majority of the Anadolu Efes’s raw
materials, such as barley and hops are
procured locally, by the company. Anadolu
Efes also encourages the growth of the
malt barley and hops varieties it developed
and registered that required less water and
resistant to change climate conditions as a
way to ensure the sustainability of natural
resources.
Anadolu Efes’s Konya and Afyon
malt factories has a combined
capacity of 118 thousand tons
while its hops processing facility
in Bilecik has 300 tons of pellet
production capacity.
From local to global...
Anadolu Efes, focused on the growth opportunities abroad
in nineties. At this stage, it was very important to make the
debut right and make way with strategic decisions. Countries
with cultural and geographic affinity was prioritized. The goal
was “to grow on the vast geography from Adriatic to Pacific”.
With the support of this igniting target,
the first investment was made in 1996
in the mining city of Karaganda located
in north-eastern Kazakhstan. To manage
the operations, Efes Breweries International
(EBI) was established in Netherlands
in 1998. Investment in Kazakhstan were
followed by those in Russia (1999),
Moldova and Serbia (2003). New factories
were opened in Russian city Rostov and
Kazakhstan’s Almaty in 2003. It was the
same year when Anadolu Efes’ foreign
sales exceeded half of its total sales. The
company was growing impressively.
In 2004, EBI started trading
in London Stock Exchange. In
2006, EBI acquired Russia’s
seventh largest beer producer
Krasny Vostok Beer, a group
based out of Kazan, and two
years later, Georgia’s leading
beer company, Lomisi.
The steady growth of the
company brought a strategic
alliance to the company,
which is very important.
In 2012, Anadolu Efes
strategically aligned with
SABMiller, world’s second
largest beer producer. As a
result, Anadolu Efes acquired
3 breweries in Russia, 1
brewery in Ukraine from
SABMiller, in exchange for a
24% in the company.
Growth with responsibility
and a human focus...
With a history of more than 40 years and as the
clear absolute market leader, Anadolu Efes is
proud to contribute to the life of its consumers in a
positive way.
Most of experiences in Turkey perceived as best
practices in the other operation countries.
The company supports several sports activities in
all its markets. Having supported Turkey’s most
successful professional basketball team for over
30 years, Anadolu Efes is also a proud sponsor of
European basketball through Euroleage.
Anadolu Efes “best practice” efforts in Turkey, such
as developing beer culture through improvement
of pubs and traditional beer houses, are replicated
in other operation countries. The company also
supports countless cultural activities.
Anadolu Efes is also one of the few companies that
have continuously supported, since 1998, archaeological
excavations to bring Turkey’s cultural heritage to light. The
company also supports development of tourism in Turkey
through projects such as “Eastern Anatolia Tourism
Development Project” (2007-2012) in cooperation with
United Nations Development Program and Turkish Ministry
of Culture, as well as “tourism education” in cooperation
with Bogazici University.
The support for the protection of the Steppe Eagle facing
extinction, which can be seen on the national flag of
Kazakhstan, is a project special to this country.
For every Karagandinskoe can, which features this rare wild
bird in its brand logo, sold in the country a set amount of
funds are donated to Steppe Eagle protection fund.
Anadolu Efes makes
sure that it reminds its
customers to enjoy its
products responsibly, by
informing them about
harm due to excessive
consumption. In Moldova,
the company creates
awareness against
underage consumption
through various
campaigns. In Russia,
Kazakhstan and Georgia,
several projects are in
place to draw attention
to the dangers of driving
under the influence of
alcohol.
Anadolu Efes
by Numbers...
Anadolu Efes is a significant
industrial player in the region
with 18 breweries, 7 malteries
and 1 hops production facility
in six countries. It is the market
leader in four countries of
operation: Turkey, Kazakhstan,
Moldova and Georgia.
Anadolu Efes has five breweries and two
malteries and one hops processing
facility in Turkey as well as eight breweries
and five malteries in Russia, two breweries
in Kazakhstan, and one brewery each in
Moldova, Georgia and Ukraine.
Anadolu Efes exports its products to
over 80 countries. As a result of its steady
growth, in 2012, Anadolu Efes received
investment-level grades from international
rating agencies Moody’s, and Standard
and Poor’s.
Anadolu Efes conducts its national and international
activities in the soft drinks industry through Coca‑Cola
İçecek A.Ş. (CCI), a company in which it controls a
50.3% stake. Employing more than 10,000 people,
CCİ is responsible for manufacturing, selling, and
distributing The Coca‑Cola Company (TCCC)
branded beverages not just in Turkey but also
in Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan,
Turkmenistan, Jordan, Iraq, Syria and Tajikistan.
Twenty-two plants and an annual bottling capacity of
1,198 million unit cases make it possible for CCI to keep
more than 360 million consumers supplied with an
extensive product range of non-sparkling options–fruit
juices, bottled water, energy and sports drinks, iced
teas, and teas–in addition to sparkling beverages.
As measured by sales volumes, CCI is the sixth largest
bottler in the Coca‑Cola System. CCI is the market
leader in Turkey, Kazakhstan, Azerbaijan, Kyrgyzstan
and Turkmenistan and ranks second in Jordan and
Pakistan.
www.anadoluefes.com